Decided on June 09,1981



- (1.) In this writ petition the short question that falls for determination is whether Ammonium Sulphate, Ammonium Nitrate, Urea, Ammonium Chloride, Sodium Nitrate, Calcium Ammonium Nitrate, Super Phosphate etc., imported and sold by the petitioner within the Municipal limits of the Town Municipal Council, Chikodi, are liable to levy of octroi either under Item-12 of Class III or under Item-3 of class IX of the II Sch. to the Karnataka Municipalities Act, 1964, (hereinafter referred to as the Act) (since filing of the petition, Octroi has come to be abolished).
(2.) The facts leading to the filing of the petition stated briefly are as follows: The petitioner is a dealer in Chemical fertilisers. He is doing so for the last 50 years in the Town of Chikodi in Belgaum District. The customers are all agriculturists. By an order dated 7-7-76 the State of Karnataka 1st respondent herein accorded sanction to the 2nd respondent-Chikodi Town Municipal Council to levy octroi on goods specified in II Schedule to the Act. The petitioner deals in different chemical fertilisers enumerated above and has been subjected to levy of octroi duty on Sodium Nitrate at 2 per cent a,d valorem, the rate being common to both the relevant entries in the II Schedule to the Act. In regard to Item 12 of Class III and Item-3 of Class 9 of the II Schedule to the Act, it is the contention of the petitioner that Sodium Nitrate is a chemical fertiliser and it cannot be subjected to levy of octroi at all as it is not covered by either of those entries. He derives support for his contention by reference to the Circular issued by the 1st respondent Deputy Commissioner, Raichur, bearing date 25-7-68. That Circular has reference to a copy of the G.O. L. No. IMA 43 MNR 66 dated 23-1-68. It is seen from the Circular that the said order of the Government clearly provides that octroi could be levied on fertilisers only if they are subject to such levy of octroi in terms of Item-43 of class 9 of the II Schedule to the Act.
(3.) Though the State has entered appearance, it is not the contesting respondent. Therefore, the learned Government Pleader appearing for State) has made no serious attempt to support the levy of octroi by the 2nd respondent-Town Municipal Council.;

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