For the sake of companyvenience, we shall refer to the appellant as the writ petitioner and the respondents as the respondent Municipalities in the latter part of the judgment.
Ltd., Bombay, the writ petitioner is engaged in the business of bottling soft drinks like Gold Spot, Limca, Thumps up, soda, Rim Zim etc.
Articles of food and drink for human and animals companysumption SI.
Description of goods Rate of Octroi Rs.
The description of the taxes was to the following effect Octroi on goods and animals brought within the limits of the Municipality of Moradabad for companysumption, use of sale therein be levied according to the rates given in Schedule I below subject to the exemptions in Schedule II thereunder SCHEDULE 1 Class 1.
The Governor of Uttar Pradesh had issued a Notification dated 26.5.1979 in exercise of powers companyferred under Section 135 2 of the Act read with Section 21 of the U.P. General Clauses Act numberifying that the companycerned Municipality had in exercise of the powers under clause viii of Sub section 1 of Section 128 of the Act imposed the following tax in the Municipality of Moradabad with effect from the date of the said Notification.
P. 1 to 16 Aerated water like Cococola, Fanta, 2.25 per quintal Vimto, sodawater lemon etc.
As the respondent Municipalities were seeking to levy octroi on the basis of gross weight number only of the beverages companytained but also of the bottles companytaining the beverages which were brought within the municipal limits of the aforesaid Municipalities, the writ petitioner companypany filed three writ petitions in the High Court of judicature at Allahabad in the year 1983.
in Civil Misc.
Under Section 128 thereof powers were companyferred on the Municipal Board governed by the State Act to impose an octroi on goods or animals brought within the municipality for companysumption, use or sale therein.
Under Section 298 of the Act, the Municipal Boards are empowered to frame bye lays for various purposes of the Act.
According to the writ petitioner companypany after the beverages are companysumed the companysumers within the municipal limits the bottles empty state are returned to it and the title and ownership in the bottles also remain with it.
During the pendency of these writ petitions, the State of Uttar Pradesh issued a Government Order on 06.04.1987 directing all the Municipalities functioning under the Act in the State number to charge octroi on the basis of gross weight but only on the weight of beverages companytained in the bottles.
The bye laws of Municipal Boards of Moradabad, Rampur, Pilibhit and Sahajahanpur were enforced during the period from 12.05.1977 to 01.09.1982.
The grievance made in the writ petition was that from 1980 onwards the respondent Municipalities were illegally recovering octroi also on the weight of bottle containers which they were number entitled to do and hence the respondent Municipalities were required to be ordered to refund the requisite amount of octroi levied on the basis of the gross weight of bottles from 1980 onwards.
During the pendency of the writ petitions in the High Court from 1983 till 1987, by interim orders, the respondent Municipalities were restrained from recovering octroi on the gross weight of bottles meaning thereby the octroi duty was required to be companyfined only on the net weight of the beverages companytained in these bottles that were imported by the writ petitioner within the municipal limits of the aforesaid four Municipalities .
Which are manufactured by Parle Exports.
After bottling these beverages at its Plants at Bareilly, the writ petitioner distributes the same to wholesalers in ten districts of Uttar Pradesh, which include amongst others, the respondent Municipalities, namely, the Municipal Boards of Moradabad, Rampur, Sahajahanpur and Pilibhit.
We have heard learned companynsel for the writ petitioner as well as learned companynsel appearing for the respondent Municipalities of Rampur and Moradabad and the State of Uttar Pradesh in support of the decision rendered by the High Court.
All these three appeals arising from a companymon judgment rendered by the High Court of judicature at Allahabad in there writ petitions project a short question whether the companymon appellant, original writ petitioner, was liable to pay octroi duty during the relevant period from 1980 to 1987 to the respondent Municipalities on the weight of the glass bottles which were brought within the municipal limits when they were companytaining soft drinks like Gold Spot, Limca, Thumps up, Soda, Rim Zim etc.
The writ petitioner is a Private Limited Company incorporated under the Indian Companies Act, 1956.
According to the writ petitioner, these bye laws provided for levying octroi on soft drinks like Cococola, Fanta, Vimgo, Soda Water, Lemon etc.
The Uttar Pradesh State Legislature enacted an Act in 1916 called the U.P. Municipalities Act, 1916 hereinafter referred to as the Act .
In the impugned companymon judgment, the division bench of the High Court held that even though the companyd drinks were being imported for being sold within the municipal limits, the bottles in which they were carried and filled in companyld be said to have been used within the municipal limits, the bottles in which they were carried and filled in companyld be said to have been used within the municipal limits for the purpose of storing these liquids till they were ultimately utilised by the companysumers companycerned.
This companytention of the writ petitioner was rejected by the Division Bench of the High Court relying on its earlier decision in the case of Prem Nath Monga Bottlers p Ltd. vs. Municipal Board, Meerut Ors.
B. MAJMUDAR, J Leave granted.
6883 of 1973 decided on 11.02.1980.
Writ Petition No.
