The Company prayed for the companytinuance of the exemption even after that time limit.
Appeal by Special Leave from the Judgment and Order dated the 26 3 1976 of the Allahabad High Court in Civil Misc.
The Board also wrote to the State Government for permission to realise octroi from the Company.
The Company tried to avoid the levy on the basis of the order of exemption, but the Executive Officer of the Board repeated the demand on May 30, 1970 and June 16, 1970.
The Government gave the permission to realise the tax.
The High Court took the view that the initial imposition of the octroi was illegal, allowed the writ petition, and issued a mandamus directing the Board number to realise the tax.
It however started bringing more articles within its premises, and the Octroi Superin tendent made a demand for a payment octroi on June 25, 1969.
The Company thereupon challenged the levy of the octroi in the High Court by a writ petition.
The Board feels aggrieved and has companye up in appeal to this Court.
The Board granted the exemption on July 21, 1967, for a period of 10 years, and that fact was acknowledged in the Companys letter dated August 18, 1967.
It appears that the Company took four grounds for challenging the levy of octroi, but the High Court examined only the following ground, as it took the view that it was enough for the Companys success in the petition, and did number examine the other grounds, that the procedure prescribed for the imposition of taxes by municipal boards under sections 131 to 135 of the P. Municipalities Act, 1916, was number fol lowed by the Municipal Board.
It applied for and obtained exemption from the levy of octroi on its building material on the ground that it was a new companycern.
The Company started the companystruction of its factory in 1968 69, and, as has been stated, it applied for and obtained exemption from the levy of octroi on its building material on the ground that it was a new companycern.
It relates to the validity of the imposition of octroi with effect from July 15, 1950, on certain goods brought within the Maunath Bhanjan Municipality, hereinaf ter referred to as the Board.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Writ No.
527 of 1976.
General, S.C. Agarwala and V.J. Francis for the Appellant.
6277 of 1974.
The Company started companystructing a textile factory, a part of which, at any rate, fell within the area of the Board.
The State Government however granted the exemption for five years.
Yogeshwar Prasad and Miss Rani Arora for Respondent No.
N. Sinha, Sol.
P. Rana for Respondent No.
The challenge to the imposition was made by the Swa deshi Cotton Mills Company Ltd., hereinafter referred to, as the Company.
The Judgment of the Court was delivered by SHINGHAL, J. This appeal by special leave is directed against the judgment of the Allahabad High Court dated March 26, 1976.
