BALLARPUR INDUSTRIES LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) The instant petition filed under Article 226 of the Constitution prays for issuance of a writ of mandamus to the respondent-State of Haryana not to levy and collect octroi on the common salt brought into Municipal Committee, Yamunanagar after declaring the Haryana Validation of Octroi and Surcharge Act, 1980 (for brevity, Act No. 7 of 1980) as unconstitutional being violative of Articles 14, 19(1)(g) and 301 of the Constitution. A further direction has been sought for issuance of a writ of certiorari for quashing the decision of Municipal Committee, Yamunanagar imposing octroi on industrial salt under item No. 61 of the Octroi Schedule. This letter is attached as Annexure P-1 with the writ petition (wrongly described as Annexure P-2). As a consequential relief, the petitioners have claimed a direction to the respondents to refund all the amount by way of octroi on salt from July, 1975.

(2.) The petitioner M/s. Ballarpur Industries Limited has various manufacturing units at different places. Shree Gopal Mills is one of its unit situated at Yamunanagar which is engaged in manufacturing amongst other items caustic soda and chlorine. For the purposes of manufacturing caustic soda and chlorine, the petitioners bring into their factory various raw material including salts within the municipal limits of Yamunanagar which is claimed to the common salt and its chemical name is Sodium Chloride. It is claimed that till January, 1975, the salt used to be obtained from Hindustan Salt Limited (a Government of India undertaking) and subsequently from its own salt works situated at Singach in Gujarat. The petitioners have alleged that vide notification dated 30-5-1953, the composite State of Punjab in pursuance of Section 61 of the Punjab Municipal Act, 1911 (for brevity, 1911 Act) had sanctioned a proposal of respondent No. 3 to levy tax in the nature of octroi on entry of goods in municipal limits of Municipal Committee, Yamunanagar for consumption, use of sale on the items set out in the Schedule to the notification which also contained the list of exempted items from the levy of octroi. Clause (b)(8) is the relevant entry which shows that the salt was exempted from octroi. It is claimed that salt has never been subjected to octroi under any law either by composite State of Punjab or by the newly created State of Haryana after 1-11-1966 despite various notifications issued for amendment of the said octroi Schedule. It has further been averred that although 1911 Act was repealed by Section 279 of the Haryana Municipal Act, 1973 (for brevity, 1973 Act) yet by virtue of clause (a) of sub-section (2) of Section 279 of 1973 Act, the notification dated 30-5-1963 was saved from repeal and continued inforce. It has also been claimed that the aforementioned notifications would be deemed to have been made and issued under the provisions of 1973 Act until and unless it is superseded by a notification or an order made under the provisions of 1973 Act. It is on this basis that the petitioner claim that salt continues to be exempted from levy of octroi under the notification dated 30-5-1963, published in Punjab Government Gazette Part I-A dated 7-6-1963. It has also been claimed that the petitioner's unit at Yamunanagar till 8-7-1975 did not pay any octroi nor was it required to pay because of the emption under Entry 8 of Part B of the notification dated 30-5-1963. However, on 8-7-1975 the Municipal Committee, Yamunanagar to have levied octroi on salt brought by the petitioner in the municipal limits of Yamunanagar by describing the same as industrial salt and the levy has been justified under item No. 61 of the Octroi Schedule which prescribed the rates at Rs. 1.40 per quintal plus Rs. 75.00 as surcharge. It has further been alleged that the aforementioned imposition of octroi is without jurisdiction because the salt is covered by the list of exemptions from octroi as per item (b)(8). It is also claimed that there is no distinction between the salt used for human consumption and the salt used for industrial purposes and that the petitioners would not fall within the ambit of Entry Item No. 61 of the Octroi Schedule. The Octroi Schedule under which it has been levied by the letters dated 8-7-1975 reads as under :

(3.) Petitioners made various representations to the respondents by sending them a certificate from Hindustan Salt Limited in which it is stated that the industrial salt sold to the petitioners unit at Yamunanagar is of the same physical and chemical consumption as that of common salt used for human consumption and the prices of both are the same. Annexures P-4 to P-8, P-10, P-11, P-14 and P-15 are the copies of various representations sent to various functionaries of the State or Municipal Committee, Yamunanagar. The aforementioned representations have remained under consideration of the State Government as is clear from letter dated 3-7-1978. Annexure P-17. On 26-11-1978, a notification, Annexure P-19 has been issued in pursuance of powers conferred by sub-section (1) of Section 84 and clause (a) of sub-section (1) of Section 84 of 1973 Act, exemption was granted from payment of octroi duty only on common salt (edible salt) within the limits of all municipal committees and notified areas for human consumption w.e.f. 1-11-1978. The text of the notification is as under :-