Octroi can only be levied on goods that are 'brought within' the limits of a Nagar Mahapalika and are brought for consumption, use, or sale therein. The mere fact that goods pass through the limits of a Nagar Mahapalika in transit is not sufficient to attract octroi.

N.D. Ojha, J.

The Petitioner is engaged in the business of manufacture and sale of cement and has its factory at Satna in the State of Madhya Pradesh. It has its office at 230, Bansidhar Market, Uncha Mandi, Allahabad, Which falls within the limits of Nagar Mahapalika, Allahabad. At this office the Petitioner enters into contract of sale of cement with customers both within the limits of the Nagar Mahapalika as well as beyond it. It maintains two godowns: one in mohalla Himmatganj within the limits of the Nagar Mahapalika, Allahabad, and the other in village Dabrajpur at C.O.D. Road out side the limits of the Nagar Mahapalika, which the Petitioner has termed as Factory Cement Dump in village Dubrajpur. For bringing cement by road from the Petitioner's factory at Satna to its godown in Mohalla Himmatganj as well as to its Cement Dump in village Dubrajpur the trucks have to enter the limits of the Nagar Mahapalika through an octroi barrier. The cement which is stocked in the godown in mohalla Himmatganj after being brought within the limits of the Nagar Mahapalika through the aforesaid octroi barrier remains within the said limits and is according to the Petitioners sold to the customers within the limits of the Nagar Mahapalika from its sale office at Bansldhar market. The Petitioner admits its liability to pay octroi in regard to such cement. As regards as the cement which is stocked at the Cement Dump in village Dubrajpur, the case of the Petitioner is that after entering the limits of the Nagar Mahapalika, Allahabad through the aforesaid octroi barrier the cement is soon thereafter taken out of the said limits to reach its destination in village Dubrajpur out side the limits of the Nagar Mahapalika. This cement also while it remains lying in the said village is sold by the Petitioner from its sale office at Bansidhar market. According to the Petitioner the cement which is clocked in village Dubrajpur passes through the limits of the Nagar Mahapalika only in transit In connection with its onward journey to village Dubrajpur and the Nagar Mahapalika for the last about 12 years, since when the Factory Cement Dump at Dubrajpur has been in existence, had been issuing transit passes at the time of the entry 01 trucks within its limits at the aforesaid cctroi barrier which used to be surrounded at the octroi barrier at the other end while going ou of the said limits in connection with the onward journey to village Dubrajpur.

2. The Petitioner's grievance in the present writ petition is that from 1st February, 1984 the Nagar Mahapalika has stopped issuing passes as, aforesaid and has started realising octroi from it in regard to such cement also which only passes through its limits for being stocked in village Dubrajpur. The reliefs prayed for in this writ petition are that a direction may be given to the Respondents, namely, the Nagar Mahapalika, Allahabad and its octroi superintendent to issue transit passes as they used to do earlier in regard to the cement taken by the Petitioner to its Cement Dump in village Dubrajpur and not to realise octroi in regard to the said cement as also to refund the amount of octroi realised in respect thereof on and after 1st February, 1984.

3. The only point which has been urged by counsel for the Petitioner in support of the aforesaid reliefs is that even though the Petitioner's cement stored at its Cement Dump in village Dubrajpur passes through the limits of the Nagar Mahapalika, Allahabad for being stored at the said Cement Dump and was sold from its sale office at Bansiohar market it could not be held to have been 'brought within' the limits of the Nagar Mahapalika within the meaning of Section 172(2)(b) of the U.P. Nagar Mahapalika Adhiniyam, 1959 (hereinafter referred to as the Act). It was urged that no octroi was payable in respect of the said stock inasmuch as it was not stored and was not in existence at any place within the limits of the Nagar Mahapalika at the time of its sale.