D C W LIMITED Vs. DHRANGADHRA MUNICIPALITY

JUDGEMENT

(1.) THIS appeal arises out of the judgment and order dated 26th April, 1994 passed by the learned Single Judge of this Hon'ble Court in Special Civil Application No. 2633 of 1994.

(2.) IT is the case of the appellant Company that it is a company incorporated under the Companies Act. In 1988, the company decided to undertake expansion of its factory situated at Dhangadhra and to modernize of its plants. For that purpose it imported raw materials between 1988 to 1993. On 8th February 1988, a letter was addressed by the appellant company to the Chief Executive Officer of the respondent No. 1 -Dhangadhra Municipality claiming exemption from octroi duty relying upon bye -law No.6(38) on the grounds mentioned therein. On 15th January, 1990, respondent No. 1 intimated the petitioner that a decision was taken on applicable made by the appellant claiming exemption that the appellant was not entitled to exemption as imports were made for modernization and not for expansion. It is the case of the appellant company that relevant factors have not been considered by the respondent Municipality that the imports were made not for modernization but for expansion.

(3.) IN view of the controversy a meeting was held between the President of respondent No. 1 Municipality and its Chief Officer on one hand and President of the appellant Company on the other hand on 28th March, 1990. In the said meeting it was agreed between the parties that the appellant shall pay 50% of the octroi duty till final decision. According to the appellant even thereafter a joint meeting was held on 9th October 1992 with the Director of Municipalities which was attended by the responsible officers of the Municipality and also officers of the appellant Company and at the said meeting it was agreed between the parties that the petitioner will pay regularly on adhoc basis an amount of Rs.70,000/ - per month, which is not liable for refund or adjustment against future payment of the octroi duty. It was also agreed between the parties that whenever a dispute of octroi payable on the basis of modernization and/or expansion will be decided the amount would be settled immediately and the amount payable by the appellant would be paid forthwith. Till further decision the ad -hoc payment of Rs.70,000/ - will be made by the appellant from August, 1992.