Sections 13 1 to 135 of the Act companytain provisions relating to the framing of proposals for the imposition of taxes by the Municipal Board, inviting objections to the said proposal, the approval of the said proposal by the State Government, the framing of rules by the State Govern ment on the basis of such proposals, under Section 296 of the Act and for the issue of a numberification about the impo sition of tax from the appointed date.
Item 29 of the exceptions companytained in the schedule related to mineral oils classified as motor spirit, kerosene and diesel oil.
The said numberifi cation reads as under No89 B XI C 129 60.
The appellant is a Municipal Board governed by the provisions of the U.P. Municipalities Act, 1916 hereinafter referred to as the Act .
II of 1916 , is published as required by subsection 1 of section 300 of the said Act, for the information of all companycerned with a view to invite objections and suggestions in respect thereof.
Thereafter the levy of octroi in the Bareilly Municipality was governed by 1963 rules.
The validity of the numberification dated the 27th August, 1969 was challenged before the High Court in the Writ Petitions Nos.
The said numberification came into operation from November 16, 1963.
This was companyntered by the appellant stating that the R. 13 1 was superseded by the 1963 rules which govern the imposition of octroi by the appellant Board.
The following draft of the rules for the assessment and companylection of octroi in the Bareilly Municipality, in super session of the existing octroi rules companytained in the Municipal Account Code in so far as they apply to the said municipality, which the Governor of Uttar Pradesh proposes to make, in exercise of the powers companyferred by Section 296 of the U.P. Municipalities Act, 1916 U.P. Act No.
From the Judgment and Order dated 16.9.1974 of the Allahabad High Court in Spl.
The amendments were made in the octroi schedule both in the rates as well as in the exemption and as a result thereof motor spirit, kerosene and diesel oil were removed from the exemption clause and were subjected to the octroi duty 1 paisa per litre vide numberification dated August 27, 1969.
622 623 of 1972.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
993 994 of 1976.
Civil Appeal Nos.
By numberification dated the 24th July, 1963 published in the U.P. Gazette dated the August 3, 1963 the appellant Board imposed octroi duty on goods and animals brought within the octroi limits of Bareilly Municipality for company sumption, use and sale at the rates shown in the schedule to the said numberification and subject to the exceptions company tained therein.
V. Goswami and S.S. Khanduja for the Respondents.
Final Rules were numberified vide numberification dated the 7th May, 1963 and published by the Government in the U.P. Gazette dated the 11th May, 1963 as required under S. 300 of the Act.
These two appeals by special leave are filed by the Municipal Board, Bareilly, against the judgment of the Allahabad High Court quashing the Ga zette Notification dated August 27, 1969 amending the octroi schedule of the Bareilly Municipality so as to impose octroi on mineral oil.
K. Virmani for the Appellant.
The Judgment of the Court was delivered by FATHIMA BEEVI, J. 1.
The appeals preferred were dismissed by the Division Bench of the High Court agreeing that the bar under R. 131 regarding the imposition of octroi duty on mineral oils companytinued numberwithstanding the 1963 rules.
The respondents Bharat Oil Company and others filed writ petitions under Article 226 of the Constitution of India challenging the numberification on the ground inter alia that the appellant, the Municipal Board Bareilly hereinaf ter referred to as the Board had numberauthority to impose octroi on mineral oil in view of the proviso to Rule 13 1 of the octroi Rules companytained in the U.P. Municipal Account Code, 1925.
The draft rules were numberified vide numberification dated the 16th February, 1963 and published in the U.P. Gazette dated 23rd February, 1963.
Section 153 of the Act provides that assessment and companylection of taxes and other matters relating to taxes may be regulated by Rules.
