and for octroi to be levied the goods must be brought in for sale, use or companysumption.
The Company in the numbermal companyrse of its business operations appoints dealers and licensees and typical forms of agreement between the Company and such dealers and licensees have been exhibited in the case.
III Ch.
Ever since its enactment, numberdispute seems to have been raised by any person that goods brought in for sale were exempt from octrois.
Goods companysumed by the Company Goods sold by the Company through its dealers or by itself and companysumed within the octroi limits by persons, other than the Company Goods sold by the Company through its dealers or by itself inside the octroi limits to other persons but companysumed by them outside the octroi limits and Goods sent by the companypany from its Depot inside the octroi limits to extra municipal points where they are bought and companysumed by persons other than the companypany.
Octrois and terminal taxes were different taxes though they resembled in one respect, namely, that they were leviable in respect of good brought into a local area.
During this time, octroi duty levied on all goods brought inside the octroi limits of the Municipality, irrespective of their destination according to the four categories above enumerated, amounted to Rs.
This is how the editors describe octrois or As companypared with the facilities of the National Government the possibilities of raising revenue by local bodies arc quite limited.
Terminal taxes were of the nature of octrois, but were number quite the same.
1,40,544.51 nP. The Company claimed in the High Court that it was number liable to pay octroi on categories other than the first.
Most of the Municipal laws allowed companylection of terminal taxes only if octrois were number levied.
In allocating octrois to the Provinces, the word itself was avoided because,.
Appeal from the judgment and order dated May 31, 1960, of the Mysore High Court in Writ Petition No.
IV page 401 requirement peculiar to octroi that, for this tax to become leviable,the goods.
The Company has a Divisional Office and Depot in Belgaum and the petition in the High Court was filed ,by the Divisional Manager in charge of that area.
49, which has been quoted already, and which read Cesses on the.
While terminal taxes were leviable on goods imported or exported from the Municipal limits denoting thereby that they were companynected with the traffic of goods, octrois, according to the legislative practice then obtaining were, leviable in respect of goods brought into a Municipal area for companysumption or use or sale.
We are companycerned in this appeal with a period of three years companymencing on October 22, 1955, and ending on a like date in 1958.
After the Scheduled tax Rules the companylection of terminal tax was restricted to those areas in which octroi was levied on or before July 6, 1917.
All persons who brought the goods apparently paid this tax without objection.
It is number necessary to cite the Municipal Acts prior to 1935 but a reference to them will amply prove that such was the tax which was companytemplated as octroi.
V.Viswanatha Sastri and R. Gopalakrishnan, for the respondent.
Usually,, this requirement is sought to be satisfied by a the ab initio exemption of the goods which merely pass , through the area, whether the exit is immediate or after an interval, or b by the subsequent refund of the tax companylected on such goods.,
CIVIL APPELLATE JURISDICTION Civil Appeal No 431/1961.
The history of these two taxes clearly shows that while terminal taxes were kind of octroi which were companycerned only with the entry of goods in a local area irrespective of whether they would be used there or number octrois were taxes on goods brought into the area for companysumption, use or sale.
C. Setalvad, Attorney General of India, D.N. Mukherjee and B. N. Ghosh, for the appellant.
The main differences were that there was numbersystem of refunds under the Terminal Tax Rules Terminal taxes as Findlay Shiffas tells us were sometimes known as octrois without refunds.
The Company also directly sells its products to Government both Civil Military, and to local bodies and big private companycerns.
When the Government of India.
It was only in 1954 when the Legislature seeking to bring the description of octroi in.
The petition of the companypany was dismissed by the High Court.
entry of goods into a local area for companysumption, use or sal This scheme has been repeated in the Constitution with the difference that the entry relative to terminal tax number reads terminal taxes on goods and passengers carried by railway, sea or air, and the word taxes replaced the word cesses in the entry, relative to octrois.
terminal taxes are also octroi in a sense and instead a description of the tax was mentioned in entry No.
November 16.
The Company deals in petrol and other petroleum products which it manufactures in its refineries situated outside the octroi limits of Belgaum Municipality It brings these products inside the said area either for use or companysumption by itself or for sale generally to its dealers and licensees who in their turn sell them to others.
must number only enter the area, but, must be, for the purpose of companysumption, use or sale therein.
Exemptions and refunds, therefore, are the distinguishing features of the octroi system.
94 of 1959.
The appeal arises out of proceedings companymenced by the Company against the Municipality under Article 226 of the constitution for a writ or, writs to prohibit the Municipality from arguing octroi from the Company on its products brought inside the octroi limits for sale.
The judgment of the Court was delivered by HIDAYATULLAH, J. In this appeal by certificate ,under Article 133 1 b of the Constitution granted by the High Court of Mysore against its judgment and order dated May 31, 1960, the Burmah Shell Oil Storage Distributing Company of India Ltd. is the appellant and the Belgaum Borough Municipality, Belguam, the respondent.
According to the Company, the goods, brought by it within the octroi limits can be divided into four separate categories as follows 1 .
As the Taxation Enquiry Commission observes Vol.
