Judgement

HANSARIA, J :- These appeals by special leave raise the question of exemption from octroi, inter alia, on initially imported plant and machinery, pursuant to Resolution No. 63 of Chinchwad New Township Municipal Council adopted in its meeting held on 4-7-1970. That Resolution reading as below permits exemption :-

"(i) in the first two years of new Industrial undertaking, initially imported plant and machinery (including spare and substitute parts) required in the beginning and building materials (i. e.) Iron, Steel, Cement or bricks are necessary for erection of the premises.

Clarification : New Industry means an Industry which is :

(i) Not formed by the splitting up or the reconstruction of a business already in existence;

(ii) Not formed by transfer to a new business of a building, machinery or plant previously used for any purpose and

(iii) Which begins or has begun to manufacture or produce goods within the Municipal area for the first time on or after the date on which the Council levies the tax under these rules or at any time within a period of 5 years immediately proceeding such levy."

The respondents (though two in number, we would refer to the facts of M/s. Century