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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO. 1970 OF 1989

Oil and Natural Gas Commission of India,

a statutory Corporation established by the

Oil & Natural Gas Commission Act, 1959,

having its Head Office at Tel Bhavan,

Dehradun and Bombay Offshore Project

at Vasundhara Bhavan, Bandra (East),

Bombay- 400 051.

…

Petitioner.

V/s.

1.

Municipal Corporation of Greater Bombay,

having their office at Mahapalika Building,

Bori Bunder, Fort, Bombay- 400 001.

2.

The Municipal Commissioner,

Municipal Corporation of Greater Bombay,

Mahapalika Building Bori Bunder, Fort,

Bombay. 400 001.

3.

Dy.Assessor & Collector (O)

having his office at Mahapalika Building,

Boribunder, Fort, Bombay- 400 001.

4.

State of Maharashtra.

…

Respondents.

Mr.Pradeep Sancheti, Senior Advocate with Mr.S.A.Balwal i/b. Vyas &

Balwal for the petitioner.

Mr.J.Reis, Senior Advocate with Mr.S.S.Pakale, Ms.Yamuna Parekh and

Mr.Sagar Patil for respondent Nos.1 to 3.

Mr.A.A.Kumbhakoni, Advocate General with Mr.Akshay Shinde and

Mr.Hemant Haryan, AGP for respondent No.4.

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CORAM :

A.S.OKA AND RIYAZ I. CHAGLA, JJ.

DATE :

28^th September 2017.

ORAL JUDGMENT :

(Per A.S.Oka, J.)

The issue involved in this petition under Article 226 of

the Constitution of India is concerned with the powers of the first

respondent- Municipal Corporation of Greater Bombay to levy octroi

on natural gas imported by the petitioner- Oil and Natural Gas

Commission within the municipal limits of the first respondent.

Under Section 192 of the Mumbai Municipal Corporation Act, 1988

(for short “the said Act”), a power is conferred on the first

respondent- Municipal Corporation to levy octroi on the articles as

specified in Schedule-H to the said Act. We may note here that

Section 139 of the said Act confers powers on the first respondent to

impose four types of taxes which include octroi. At the material

time, Entry 22(a) of Schedule- H read thus:

“22(a) Mineral Oils of all sorts, diesel oil, petrol,

aviation spirit, all kinds of lubricating oils, while

oil, spindle oil, furnance oil, petroleum products,

mava oil, sevasol, solvent oil, other fuel oils, oils

used as insecticides, natural gasoline, paint

solutions and compositions, Turkey Red Oil, and

by-products of mineral oils, but nothing herein

before contained shall include kerosene and Crude

Oil …... 1 percent ad-valorem.”

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The petitioner has referred to a letter dated 27^th March 1985

addressed by the Deputy Assessor and Collector (Octroi-Refund) of

the first respondent to the Senior Deputy Director (F & A), Oil and

Natural Gas Commission by which the octroi was demanded on

natural gas imported by the petitioner during the years 1978-79 to

1982-83. The said letter refers to various books and alleges that the

natural gas is similar to liquified petroleum gas which is capable of

being used as a fuel. It was contended that the natural gas is

therefore, chargeable under Class-IV Entry 22(a). Another letter

annexed to the petition is dated 9^th January 1986 is by the

Additional Municipal Commissioner of the first respondent

addressed to the Director, Finance and Accounts (Operation) of the

petitioner. The said letter records that from 27^th March 1985

various letters have been sent to the petitioner calling upon the

petitioner to pay octroi but the same has not been paid. There is

another letter dated 5^th February 1986 addressed by the Senior

Deputy Director (F & A) of the petitioner to the Additional Municipal

Commissioner in which it was contended that as stated in letter

dated 5^th June 1986, octroi is not payable on natural gas as it is not

included in the petroleum products. On 16^th March 1