AI Structured Summary
Not yet generated for this judgment
Judgment
Bharucha, J.—The appeal is directed against the summary rejection of the writ petition filed by the appellants.
The appellants import goods into India and transport them out of the limits of the Municipal Corporation of Greater Bombay to their mills at Thane without payment of octroi thereon. Sometimes, however, when they do not immediately require the imported goods, the goods are stored in Customs Bonded Warehouses located within the Municipal limits. Upon these goods the Municipal Corporation collects octroi and refunds it, except for the element of service charge, when the goods are transported outside the Municipal limits.
It is the contention of the appellants that since octroi can be collected, u/s 192 of the Bombay Municipal Corporation Act, only on goods which enter Greater Bombay "for consumption, use or sale therein" no octroi can be collected on goods which are stored in so safe a storehouse as a Customs Bonded Warehouse pending transportation outside the Municipal limits.
Clearly, a case is made out by the appellants which requires consideration.
Mr. Dalal, learned Counsel for the respondents, pointed out to us the Judgment of a Division Bench of the Gujarat High Court in I.C. Texturing Industry and Anr. v. Surat Municipal Corporation 1984 (1) Gujarat Law Journal 197, which, in similar circumstances, has taken a view converse to that canvassed for by the appellants. It seems to us that, nonetheless, the point raised by the appellants requires the consideration of this Court.
At the stage of the admission of the appeal, interim relief was given to the appellants on the basis of the undertaking given by them that all the imported goods they stored in Customs Bonded Warehouses would be transported outside the Municipal limits and would not be used, consumed or sold therein. They also undertook to give monthly statements to the Municipal Corporation showing the imported goods which were stored in Customs Bonded Warehouses and the goods transported from the Customs Bonded Warehouses outside the Municipal limits.
Mr. Dalai submitted that no interim relief should be granted to the appellants in view of the aforementioned Gujarat judgement. He submitted also that when refund was made it was made of all the octroi collected but for 6.25% thereof which was the service charge of the Municipal Corporation.
Taking this into account, we pass the following order:
The appeal is allowed. The order of summary rejection is set aside and is substituted by the following:
Rule. Expedited.
The respondents waive service.
Mr. Parsurampuria, learned Counsel for the appellants, undertakes to court that, pending the disposal of the petition, all imported goods which are stored the appellants in Customs Bonded Warehouses within Greater Bombay''s Municipal limits shall not be sold, consumed or used within the Municipal limits but shall be transported there out .He further undertakes to court to give monthly statements to the 2nd respondent setting out particulars of goods which have been imported by the appellants and stored in Customs Bonded Warehouses, as also particulars of such goods as are taken from Customs Bonded Warehouses and transported outside the Municipal limits.
The undertakings are accepted and, on the basis thereof, an order is made in terms of prayer (d) of the petition, save and except that the appellants shall pay to the 2nd respondent the amount of the element of the said service charge on the goods so stored.
The appellants shall be at liberty to apply for refund of the said service charge paid by them under this order at the hearing of the petition.
Liberty to the 2nd respondent to apply for a fixed date for the hearing of the petition after an affidavit-in-reply has been filed by them.
No order as to costs.