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1995 Supreme(Guj) 265
Gujarat High Court
Judgename :R.K.Abichandani
PRAFUL MANILAL HARGADA - Appellant
Versus
JAMNAGAR MUNICIPAL corporation - Respondent
S.C.A. 499 of 1984
Decided On : 06/23/1995
Headnote:(a) Bombay Provincial Municipal Corporation Act, 1949 - Sec. 127(2)(a) - Octroi Rules of Jamnagar Municipal Corporation - Rule 11(2)(e) - Levy of octroi on the job work of dyeing and printing of plain cloth and plain sarees - Interpretation of words `Consumption and `use - Held, the plain cloth is `consumed and `used therefore octroi is leviable. (b) Words & Phrase - `Consumption and `use - Printing and dyeing of plain cloth would amount to `consumption and `use.-The plain cloth or plain sarees which are brought within the Municipal limits for the purpose of dyeing and printing for making printed and coloured sarees are consumed in making of such printed and coloured sarees. The concept of user in context of imposition of Octroi is additional to the concept of consumption. The word "use" means the act of employing a thing for any purpose. When a thing is used, it is utilised or employed for or with some aim or purpose. Use of a thing can be its application or conversion to some good or useful end. Even if it is assumed that the goods used in the process are not used up or destroyed or devoured or wasted so as to mean consumption in the narrow sense, the word "use" has a much wider significance and the plain cloth which goes into the making of printed and coloured sarees is clearly used for making such sarees. Therefore, even by reference to word "use" alone it can be said that the plain cloth and plain sarees which are converted into printed and coloured sarees by the process of dyeing and printing are being put to use so as to attract Octroi at the time of their entry within the Municipal limits.[Paras 8 & 9]
( 1 ) THE petitioners who are doing the work of printing and dyeing cloth for sarees in Jamnagar seek a declaration that no Octroi is leviable on the cloth or sarees which were brought into the limits of Jamnagar city for the purpose of printing and dyeing by the petitioners. The petitioners had also challenged the validity of Rule 11 (1) (e) of the Octroi Rules of the Corporation. However, at the inception of the hearing of this petition, the learned Counsel for the petitioners submitted that the petitioners did not press for that relief prayed for in paragraph 18 (a) of the petition and also did not press for the prayer seeking a direction to include the petitioners job goods in item No. 21 of Schedule "d" of the Octroi rules of the Corporation contained in paragraph 18 (b) of the petition.
( 2 ) THE petitioners case is that they are doing job-work of dyeing and printing plain cloth and plain sarees and are not doing business of buying or selling the said goods. According to them plain cloth and plain sarees are brought within the municipal limits of Jamnagar Municipal Corporation from various surrounding places as also from Bombay and Ahmedabad for dyeing and printing work for which favourable conditions existed in Jamnagar due to the waters of river Rangmati. After the work was carried out on the plain cloth, the coloured and printed sarees were transported to the respective owners destinations.
( 3 ) IT was contended on behalf of the petitioners that the plain cloth and plain sarees were sent to the petitioners by merchants from outside Jamnagar merely for dyeing and printing work to be done thereon by the petitioners under works contract and therefore, the respondent Corporation was not entitled to levy and Octroi on such plain cloth and sarees because they were not imported for consumption use or sale in the city. It was argued that the petitioners were already paying Octroi for colours and chemicals which were used for this job-work of dyeing and printing the plain cloth and plain sarees. These were the only contentions raised for the petitioners and the contentions having bearing on prayer clauses 18 (a), 18 (b) were not pressed as noted above. The learned Counsel appearing for the respondent corporation argued that there was consumption and use of the plain cloth and plain sarees which were within the Municipal limits and converted by the process of dyeing and printing undertaken thereon by the petitioners, into printed and coloured sarees. According to the respondent Corporation, the petitioners are doing printing work on cloth and sarees imported in the city limits. The cloth which is imported is cut into pieces according to the requirement and the goods imported change their original form, condition and appearance and therefore, the petitioners are not entitled to refund of Octroi, Under Rule 11 (1) (e) of the Octroi Rules of the respondent Corporation, refund can be given in respect of the goods exported if they have not changed their original form, condition, state or appearance by any process of manufacture or otherwise since their import, Similar provision is also contained in the Standing orders in paragraph 15 (2) (b) (iii ).
( 4 ) UNDER Sec. 127 (2) (a) of the Bombay Provincial Municipal Corporation Act, 1949 (hereinafter referred to as the Act), a Municipal Corporation is empowered to impose Octroi which is defined by Sec. 2 (42) of the Act so as to mean a cess on the entry of goods into the limits of city for consumption, use or sale therein. The question that arises is whether plain cloth brought within city limits for the purpose of printing and dyeing work to be done thereon and for making printed and coloured sarees can be said to be goods brought for consumption or use of such plain cloth within the Municipal limits.
( 5 ) UNDER Entry 52 of the State List contained in the 7th Schedule to the constitution of India. State legislature is empowered to impose taxes on the entry of goo
