J.M.Tandon, J. - (1.) In this writ petition, a challenge has been laid to the competency of the respondents to charge octroi from the petitioner for the import of Indian made foreign liquor to its warehouse within the limits of Municipal Corporation, Jullundur City.
(2.) The petitioner sells Indian made foreign liquor in the State of Punjab and for this purpose maintain,, a bonded warehouse, licensed under S. 22(a) of the Punjab Excise Act, 1914 (hereinafter referred to as the Excise Act), within the limits of Municipal Corporation of Jullundur City. The liquor imported by the petitioner is stored in the banded warehouse without payment of excise or countervailing duty. The liquor. passes the octroi barrier of the Municipal Corporation, Jullundur, to reach its destination. Prior to the setting up of the Municipal Corporation, Jullundur City, there was a Municipal Committee governed by the Punjab Municipal Act, 1911. A Municipal Committee has power to levy octroi on the entry of goods within its local area under S. 61(2) of the Punjab Municipal Act. The Municipal Committee, Jullundur, had levied octroi tax ad valorem on Indian made foreign liquor. After the Municipal. Corporation, Jullundur City, was set up in 1977, it continued to charge octroi from the petitioner for the import of liquor to its bonded warehouse. The octroi was charged not on the basis of the invoice value of the liquor, but on its potential value including the excise/countervailing duty which was to be paid by the petitioner to the Excise authorities within the State of Punjab when it was issued for sale from the bonded warehouse. The petitioner feeling aggrieved by the impugned levy, appealed to the Commissioner, Jullundur Division, challeging the authority of the Corporation to charge octroi and in any event to charge it an the potential value of the liquor including excise/countervailing duty. The Commissioner dismissed the appeal. It is under these circumstances that the present writ has been filed wherein the competency of the respondents to charge octroi and further to include the excise duty payable by the petitioner at the time of issue of liquor from the bonded warehouse for assessing its value for the purposes of octroi has been questioned. The petitioner has also challenged the vires of Sections 90(3) and 113 of the Punjab Municipal Corporation Act, 1976 (hereinafter referred to as the Corporation Act), which relate to the levy of octroi.
(3.) The respondents, in their written statements, denied that the levy of octroi was illegal or Ss. 90(3) and 113 of the Corporation Act ultra vires, as alleged by the petitioner.;