- (1.) By this writ application the petitioners have asked for relief for declaration that they are not liable to pay octroi/terminal tax in view of the exemption given under para 3(f) of the Port Blair Municipal Council Octroi/Terminal Tax Bye-Laws framed under the Andaman and Nicobar Municipal Regulations, 1994 and the Municipal authorities are not authorised to realise the terminal/octroi tax from the petitioners or their members. A further challenge has been thrown to the notification dated 21st May, 1993, issued by the Lieutenant Governor for realising of octroi/terminal tax from the petitioners in exercise of his power under Section 71(6) of the Andman and Nicobar Islands (Municipal Boards) Regulation, 1957, contending the same being ultra vires and unconstitutional. The writ-petitioners have also prayed for further relief for refund of the terminal/octroi tax in so far as the S.S. 1. Units are concerned and the units at Port Blair within the jurisdiction of Municipal Council.
(2.) The petitioners, excepting the petitioner no. 2, are a group of Small Scale industries and they are manufacturing wood products. The business of the petitioners is of amongst other, purchasing of logs/timbers and manufacturing wood products.
(3.) In terms of a notification, the Municipal Council has been realising octroi/terminal tax from the petitioners. According to the petitioners, the Lieutenant Governor unlike the Chief Commissioner under the provisions of law, has no authority and/or jurisdiction to act and/or discharge legislative function to frame regulations authorising Municipal Council to impose and realise octroi/terminal tax upon amongst others, wood products. It is further contended that the Lieutenant Governor has only jurisdiction to act administratively. He has no rule making power; so, the notification dated 21st May, 1993 issued by the Lt. Governor imposing octroi/terminal tax under section 71 (6) of the said Regulations of 1957 is unconstitutional and without any authority of law. Moreover it is contended by the petitioners that the petitioners are entitled to get exemption from paying octroi/terminal tax in terms of para 3(f) of the Port Blair Municipal Council Octroi/Terminal Tax Bye-Laws framed under Andman and Nicobar Municipal Regulation, 1994; but such exemption has not been granted to the petitioners whereas manufacturer's controlled by the Government are granted such exemption by the Lieutenant Governor. Therefore, they are entitled to get refund of the octroi/terminal tax which has already been paid.;