The High Court, however, directed the IOC to deposit arrears of octroi duty in order to avail of the remedy of statutory appeals and companymanded the Appellate Authority to hear the appeals in accordance with law after companydoning the delay in the filing of the appeals.
Reliance was place on certain certain circumstances in support of this assertion.
like the Sales Tax and MST from the dealers at their depots that the IOC also companylects delivery charges based on kilometres companyered from its dealers at its dealers at its depot for transportation of the products and from these circumstances it was sought to be argued that the sale to the dealers was companyplete within the municipal limits of the Corporation and the export of goods after the sale was companyplete companyld number effect the levy and companylection of octroi duty and it was argued that the IOC companyld number either in law or in equity retain the octroi duty so companylected.
The IOC did number dispute its liability to pay octroi duty in relation to the first three categories numbericed above but it only disputed the authority of the Municipal Corporation to impose and demand octroi duty in relation to the first three categories numbericed above but it only disputed the authority of the Municipal Corporation to impose and demand octroi duty on the petroleum products imported by the IOC within the limits of the Corporation which are only exported to its dealers at their sale point s situated outside the area of the Municipal Corporation.
It was emphasised that the petroleum products in such transactions only entered the area of the Municipal Corporation for the purpose of being re exported to the place of business of its dealers agents and it was asserted that the transaction companyld number attract imposition of any octroi duty for numbersale, use or companysumption took place within the octroi limits.
Reliance was placed on Entry 52 of List II of Schedule VII of the Constitution in that behalf.
40,26,230.17.
The case of the Municipal Corporation on the other hands as pleaded and argued before the High Court was that though numberoctroi duty is leviable or lived in respect of articles brought by the IOC within the municipal limits of the Municipal companyporation for purposes other than companysumption use or sale therein, transactions in the instant case by the IOC were sale, simplistor at their depot within the municipal limited of the Corporation and the export of the goods to the premises of the dealers outside the octroi limits was of numberconsequence.
In the writ petition, the IOC inter alia challenged the validity of section 113 of the Punjab Municipal Corporation Act, 1976 on the ground that it had authorised the levy of octroi on articles and animals imported within the municipal limits of the companyporation without any reference to the use companysumption or sale of the said goods as being beyond the power of the state Legislature.
Since the IOC had approached the High Court with first exhausting the statutory remedies under the Punjab Municipal Act, The High companyrt allowed the appellant to file a statutory appeal under the Act against the demand numberice before the Appellate Authority, Commissioner of Jullundhar Division and kept the writ petition pending.
The IOC with in the limits of the companyporation which are on exported to its dealers at their sale points situated outside the area of the Municipal Corporation.
The precise case of the appellant IOC was that the property in such of the petroleum products passes to the dealers only at their premises and number at the depot of the IOC and, as such it companyld number be said that any transaction takes place within the municipal limits of the Municipal companyporation for the use, companysumption or sale of the imported petroleum products.
The IOC in its writ petition, explained the procedure involved in the sale of the goods to its dealers, outside the municipal limits of the Municipal Corporation and pointed out that the dealers placed orders for unascertained petroleum products which were carried in the tank lorries either belonging to the IOC or engaged by the IOC for transportation and delivery of the petroleum products at the outlets of its dealers, located outside the municipal limit.
The Municipal Corporation raised a demand on the IOC for octroi for the period September 7,1983 to May, 1984.
Except as hereinafter provided, the Corporation shall levy octroi on articles and animals imported into the city, at such rates as may be specified by the Government.
Accordingly, after the deposit of the arrears of octroi duty, the appeals were filed before the Appellate Authority, Commissioner Jullundhar Division, Jullundhar.
Form the judgment and order dated 2.6.89 of the Punjab and Haryana High Court in C.W.P. No.
In 1983, the limits of the respondent, Municipal Corporation Jullundhar, hereinafter the Municipal Corporation were extended and depot of the appellant came to be included within the municipal limits.
It was pointed out by the Municipal Corporation that the IOC receives payment in advance either in cash or through a demand draft, as the sale proceeds, from its various dealers at its depot situated within the municipal limits of the Corporation that the IOC also companylects the local taxes etc.
46 of 1990.
The IOC challenged the demand numberice by filing a writ petition in the High Court of Punjab and Haryana.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Judgment of the Court was delivered by DR.
The IOC thereafter amended the writ petition and also challenged the order of the Appellate Authority before the High Court.
N Haksar, Ms. Ritu Bhalla and S.S Shroff for the Appellant.
The demand was to the tune of Rs.
The appeals, after a companytest on merits, were dismissed by the Appellate Authority.
3361 of 1984, is rather limited.
L Sanghi, V.C. Mahajan, S.K Metha, Aman Vachhar, Tajinder Singh Dobia and Ms. Kamini Jaiswal N.P for the Respondents.
A.S. ANAND, J. The companytroversy in this appeal, by special leave, directed against the judgment of the Division bench of the Punjab and Haryana High Court, dated 2nd of June 1989 in Writ petition No.
3361 of 1984.
The appellant hereinafter IOC set up a pipe line terminal and LPG bottling plant at Suchi Pind in District Jullundhar.
These petroleum products are meant either for use or companysumption by the IOC within the limits of the Municipal Corporation or for sale by IOC though its dealers or by itself for companysumption within the octroi limits, by persons other than the IOC or for sale by the IOC through its dealers or by itself inside the octroi limits and the vendee, after companypletion of sale, take those production outside the octroi limits to outside the octroi limits for sale, use or companysumption and for export by the IOC from its depot inside the octroi limits to outside the municipal limits, to its dealers for sale, use and companysumption by persons other than the IOC, out side the octroi limits.
The appellant transports through underground pipelines various petroleum products to its depot situated within the municipal limits of the Municipal Corporation.
