- (1.)IMPOSITION of Octroi duties by the respondent on the import of plain spirit and country liquor at the rate of 30 paisa per bulk litre has been challenged in this petition with a prayer for quashing the same and restraining the respondent from charging such Octroi duties from the petitioners.
(2.)IT is submitted that the petitioners were contractors/ suppliers carrying on their business in the supply of country liquor in bulk to amongst others the State of Jammu and Kashmir. Contracts for the supply of country liquor were obtained by the petitioners from the State Government in open competition for which agreements were executed. Under the agreement the petitioners were obliged to deliver the stipulated quantity of country liquor to the Excise Department of the State at the Warehouse Jammu according to the rates agreed. It is submitted that vide resolution No. 61 dated 22 -7 -1974 the Finance Standing Committee of the respondent. Council recommended that Octroi on the country liquor be imposed at the rate of 0.30 paisa per bulk litre The Council passed a resolution No. 115 dated 16 -1 -1975 proposing the imposition of the said duty. Respondent No. 2 is alleged to have issued notification whereby the Octroi at the aforesaid rates was imposed. The imposition of the Octroi has been alleged to be illegal, unjustified and ultra -vires of the Municipal Act and the Constitution. It is submitted that the duty was not imposed in accordance with the provisions as contained in Section 77 and 78 of the Municipal Act.
(3.)IN the counter affidavit filed on behalf of the respondents 1 and 2 it is submitted that the Octroi duty has been imposed strictly in accordance with the provisions of law and the procedure prescribed under section 78 of the Municipal Act. It is submitted that the respondents used to impose Octroi on animals and goods or both brought within the Municipal limits for consumption or used there under section 77(2)(ii) of the Municipal Act vide Govt. order 510 -UD/LM of 1973 dated 18 -7 -1975 and Govt. order No. 45 -UD/LM of 1974 dated 18 -4 -1974 since 22 -4 -1974 under the Municipal Octroi Bye -Laws forming the annexures to notification SRO 153 dated 10 -4 -1974. It is submitted that the procedure for imposition of Octroi on import of plain spirit and country liquor at the rate of 0 -30 paisa per bulk litre was meticulously followed as provided by the Municipal Act. It is submitted that the Council in its meeting attended by all the 19 Councilors unanimously resolved vide resolution No. 57 dated 15 -11 -1974 to impose Octroi on import of plain spirit and country liquor. The notice of proposing imposition was published for general information inviting objections. As no objections were received, the Council vide resolution No. 115 circulated and assented to by 16 Members present, resolved that Octroi duty as proposed be imposed. Notification in terms of sub -section (7) of Sec. 78 of the Municipal Act was published in the Govt. Gazette dated 13 -2 -1975. The petitioner is stated to have been paying the octroi duty on the plain spirit and country liquor without any objection for the last 4 years and thereafter stopped paying on false pretext. The octroi is claimed to have been imposed under the provisions of the Municipal Act with the previous sanction of the Government, which was accorded vide Govt Order No. 570 -UD/LM of 1973 and Govt. order No. 45 -UD/LM of 1974. The writ petition is stated to be not maintainable as no fundamental or legal right of the petitioner has been violated.
I have heard the learned counsel for the parties and perused the record.