JUDGMENT - M.B. SHAH, C.J. :---Distilleries Limited, Aurangabad, has filed this petition praying that the respondents - Municipal Corporation, Aurangabad and the Octroi Superintendent of the Aurangabad Municipal Corporation - be directed to levy the octroi (at the rate of 1.50 per cent) on raw material (industrial alcohols) which the petitioner is likely to import in future. It is also prayed that the order dated 16th October, 1986 or dated 22nd October, 1986 and the Bill of Demand for Rs. 8,82,538.90 ps. are illegal and, for that purpose, appropriate directions be issued.

2. It is the say of the petitioner that the petitioner-Company is manufacturing potable liquor. The petitioner is also having a licence for manufacture of potable liquor by the licensing authority under the provisions of the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966, and that the petitioner is carrying on the manufacturing of potable liquor in accordance with the terms and conditions of the licence. For the purpose of manufacturing potable liquor, the petitioner is required to import raw material, such as, rectified spirit, scotch spirit, barley malt, molasses, coal, etc. It is also pointed out that the petitioner brings rectified spirit from Chitali, Shrirampur, District Ahmednagar.

3. It is the say of the petitioner that the Municipal Corporation, Aurangabad - respondent No. 1 has adopted octroi rules, known as Aurangabad City Municipal Corporation Octroi Rules. According to the Octroi Rules, octroi is levied at the rates mentioned in Schedule "O" for the various articles. Class I consists of "articles used for food or drink by men or animals and drugs". Class III consists of articles used for fuel, lighting, washing and industrial use. As the petitioner is manufacturing potable liquor, for its manufacture, the petitioner is importing within the limits of Aurangabad City rectified spirits and it would be covered by Class III, Entry 37 of Schedule 'O' of the Octroi Rules. Despite this clear position, the respondents are demanding octroi as if the goods imported by the petitioner are covered by Entry 7 of Class I.

4. For appreciating the controversy raised by the petitioner, it would be necessary to refer to relevant entries in the Octroi Rules framed by respondent No. 1 - Aurangabad Municipal Corporation. Rule 4 of the Octroi Rules provides that subject to the provisions of the Act and subject to the exemptions and provisions hereafter expressly specified, an octroi on all goods of the description given in Schedule 'O' shall on the import thereof for the purpose of consumption, use or sale within the octroi limits of the Corporation, be payable to the Corporation at the rates specified for such goods respectively in the said Schedule. For the purpose of this petition, relevant entries of Schedule 'O' are as under :---

Schedule showing the goods liable to Octroi and the rates leviable.

"Item Description Rates fixed

No. of goods by Corpn.,

Aurangabad

Ad valorem Per 10 kgs.

unless other -

wise specified

(1) (2) (3) (4)

Class I - Articles used for food or drink by men or animals and drugs.

1) Grain, pulses and cereals of all sorts

including gavar, soyabean, parched grain,

paddy, rava, kani, kani layha, murmura,

phutana and poha. 0.05 per S10 kgs. 7) Wine and spirits and beer, Ganja and

bhang, opium, charas. 5%

13) Edible bacon and hams, table butter, margarine, dried or preserved fruits

and betel nuts, canned fish,

cheese, confectionery, jams and jellies,

milk condensed and preserved, ice cream,

all sorts of farinaceous foods, pickles,

coca, coca beans and chocolates,

biscuits and cakes, lard or edible animals fats, mawa, milk cream, chakka and curds, fruit juices, syrups and all beverages, glucose, extrose or any or it, sugar oil stores (except edible oils) preserved provisions, baking or curry powder, Saccharin, all kinds of food colours and essences-Glucose of all

Click Here to Read the rest of this document