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SANJEEV PRAKASH SHARMA, SUDEEPTI SHARMA
Sewa International Fashions Ltd – Appellant
Versus
State of Haryana – Respondent
JUDGMENT
Mrs. Sudeepti Sharma, J.
Challenge in the instant writ petition is to order dated 05.09.1998 issued by the Commissioner, Municipal Corporation, Faridabad; order dated 07.05.1999 passed by Commissioner, Gurgaon Division and order dated 04.03.2002 passed by Commissioner and Secretary to Government of Haryana Urban Development Department, Chandigarh.
2. Brief facts of the case are that petitioner-company is running the business of manufacturing and exporting garments since 1994. For manufacturing of garments, it required Embroidery Machine and subsequently, the petitioner-company imported "Electronic Embroidery Machine" within the Municipal Limits of Faridabad Corporation, without payment of the octroi tax. The Inspecting Team of the department found that the said "Electronic Embroidery Machine" had been brought within the limits of the Corporation in two containers. Since one container was found inside the factory premises of M/s BPL on one gate and other container was lying outside the gate, the Inspecting Team asked the Gate security of M/s BPL to produce the relevant papers and the Octroi receipt of the said consignment but there was no receipt of payment of octroi tax. The
The classification of imported machinery under specific entries in the octroi schedule prevails over general entries, confirming liability for octroi tax and penalties.
The court held that software discs qualify as scientific appliances subject to octroi duty, affirming the duty is assessed only on the single site usage value.
A claim for tax refund requires proof that the burden was not passed on to consumers, and failure to protest payments undermines the claim.
The court held that the plaintiff must substantiate claims with concrete evidence, and failing to do so results in dismissal of the suit, emphasizing the burden of proof lies on the claiming party.
The court ruled that the Principal Commissioner's order was invalid due to failure to consider prior findings and the petitioner's submissions, violating principles of natural justice.
The imposition of octroi on goods like groundnut oil does not infringe the right to trade under the Constitution if justified as reasonable and in public interest.
Claim for tax refund not barred; right to sue established post relevant judicial decisions.
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