Rajesh Balia, J. - (1.) HEARD learned Counsel for the parties.
(2.) THE three writ petitions concerns the levy of octroi duty on the supplies of petroleum products made by the petitioner companies in each case, to its dealers for their sale consumption and use outside the municipal limits. Under the terms of dealership the petroleum products are transported from respective depot of the respective petitioners at Jodhpur and supplies of petroleum products to such dealers at different places are made at the risk of the petitioners. The sale of such petroleum products takes place outside the municipal limits of Jodhpur and not at the Jodhpur depot of the petitioner. Since July, 1975, the respondent Municipal Council suspended the transport facility of the petitioner in each case on the ground that the octroi duty could be charged from the petitioners in respect of goods transported from within the municipal limits, even though they were to be exported for sale outside the municipal limits and made a demand for levy of octroi duty on the supplies made by the petitioner companies to their dealers outside such local limit. The said levy was challenged by one of the dealers M/s. Parikh Automobiles contending that the Municipal Council had no right to charge octroi on goods transported outside its limits to dealers of oil companies for their ultimate use, consumption or sale outside such limits when the goods were not sold at Jodhpur but the sale took place only at the destination. Accordingly, it was contended that since no taxable event for levy of octroi viz. entry of the goods within municipal limits for sale, use or consumption therein, took place therefore no tax could be levied under the Rajasthan Municipal Act by way of levy of octroi.
(3.) IT was ultimately held by the Apex Court in the case of M/s Parikh Automobiles that sending of goods outside municipal limits by the oil company deposits, situated within the municipal limits would not attract levy of tax under Section 104 of Rajasthan Municipalities Act and the levy was held to be ultra vires.;