The Gujarat Panchayat Act, 1961 was made applicable to Okha on and with effect from April 1, 1965.
ESSO, a companypany incorporated in USA had been dealing in petroleum products in India.
This was for the reason that transfer from the bonded warehouse and to the bonded warehouse at Okha did number call for payment of excise duty.
The rest was taken out to places outside the Gram Panchayat for distribution and sale.
191 and 192 of 1970 were filed by the appellant.
It had bonded warehouses both at Bombay and Okha, maintained under the provisions of the Central Excises and Salt Act, 1944.
When demand numberices were served by the Panchayat on the above basis, ESSO filed revisions before the Development Commissioner which were disposed of on November 13, 1969.
It directed further that if the appellant had number made a formal application to the Panchayat in that behalf, the Panchayat shall permit it to do so.
ESSO was also maintaining a current account facility as companytemplated by Rule 34 B of the Rules.
It is against the said order that both the Panchayat and ESSO filed writ petitions in the Gujarat High Court.
In Writ Petition Special Civil Applications Nos.
The writ petitions were filed against the orders passed by the Development Commissioner who was approached by the appellant by way of two revision applications.
Of the total quantity stored at the storage facility within the Okha Gram Panchayat, only about 5 was released for companysumption, use or sale within the territorial limits of the Gram Panchayat.
The ESSO was importing products at Okha from Bombay.
When the goods were removed from the bonded warehouse at Okha for the purpose of sale or for marketing, excise duty was payable and was paid.
The writ petition filed by the Gram Panchayat has been allowed.
In July 1966, a dispute arose between the Panchayat and the ESSO.
191 and 192 of 1970, the High Court negatived the challenge to the validity of Rule 32 of the Gujarat Gram and Nagar Panchayats Taxes and Fees Rules, 1964 Rules .
Panchayat claimed octroi duty on all goods imported into Okha Panchayat limits, irrespective of the fact whether they were companysumed, used or sold within the limits of Panchayat or were taken out for being sold and distributed outside the Panchayat limits.
1650 of 1969 was filed by the Gram Panchayat, Okha.
Petrol, diesel oil and furnace oil were stored there.
The Judgment of the Court was delivered by P. JEEVAN REDDY, J. This appeal is preferred by the Hindustan Petroleum Corporation Limited, successor to the ESSO Standard Eastern Corporation against a companymon judgment of the Gujarat High Court in three writ petitions.
At the same time, the Gram Panchayat was directed to entertain the appellants claim for refund of octroi duty and to decide it according to law and in the light of the observations made in the judgment, after permitting the appellant to lead evidence in support of its claim and after giving it a reasonable opportunity of being heard in the matter.
Further while determining the value of the goods for the purpose of octroi duty, the Panchayat added the excise duty to their value, even though by that date of import, excise duty had number yet been paid by the appellant.
One such storage facility was located within the limits of Okha Gram Panchayat in the State of Gujarat.
The dispute pertains to levy of octroi duty by the Gram Panchayat.
The other two Writ Petition Nos.
Since that date, ESSO has been paying octroi to the Panchayat on the goods companysumed, used or sold within the limits of the Panchayat.
Writ Petition No.
