MUNICIPAL COMMITTEE, BHATAPARA Vs. BOARD OF REVENUE, M.P.

JUDGEMENT

(1.) IN this petition under Articles 226 and 227 of the Constitution of India the question raised is as to the liability of the opponent No. 3 to pay octroi duty on kerosene oil imported within the Municipal limits of Bhatapara and stocked in tanks constructed by the oil distributing companies in railway area.

(2.) ACCORDING to the petitioner Municipality, it has been levying since the 4th November 1949 octroi tax, under section 66 (1) (e) of the C. P. and Berar Municipalities Act, 1922, on all animals and goods including kerosene brought within the municipal limits for sale, consumption or use. Under the bye -laws framed by the committee for the assessment, collection and refund of the octroi tax (published in Madhya Pradesh Gazette, Part -Ill, dated the 4th November 1949, at page 1140), articles subject to octroi duty become liable to duty as soon as they enter the octroi limits. In regard to goods imported by railway, bye -laws Nos. 17 and 18 provide as follows : - Goods imported by Railway. -An outpost with an assistant superintendent or inspector in superior charge shall be maintained near the Railway station.

(3.) ON a reading of section 66 (1) (e) of the Act and the byelaws framed by the Municipal Committee for the assessment and collection of the tax, it is clear that though goods become liable to payment of octroi duty when they are brought within the municipal limits for consumption or use within those limits, liability to the actual payment of tax does not arise until the goods are brought within the octroi limits. Now, so far as goods imported by raid are concerned, bye -law No. 18 provides that the goods shall be deemed to enter the octroi limits directly they pass out of the railway station enclosures. It is plain enough from the wording of this bye -law that so long as the goods are within the railway station enclosures, they are regarded as outside the octroi limits and the importer does not become liable to pay octroi tax on goods remaining within the railway station enclosures. His liability arises only when they pass out of the railway station enclosures. The question then arises as to the meaning of the expression "railway station enclosures". Shri Sen, learned counsel for the applicant, argued that 'railway station enclosures' mean only railway platform, station yard and goods shed; and that the oil -tacks constructed by the oil companies, though located within the railway boundary, cannot be regarded as within the railway station enclosures, and that, therefore, the moment the oil is transferred from the railway wagons to these tanks, the opponent -firm becomes liable to octroi tax on kerosene stocked in those tanks. Reliance was placed on South Eastern Bail. Co. v. Railway Commissioners etc. (1).