Nagar Mahapalika Bareilly Vs. State of U.P.
EmailAppeal: Special Leave Petition No. 14968/87.
Petitioner: Nagar Mahapalika Bareilly
Respondent: State of U.P.
Apeal: Special Leave Petition No. 14968/87.
Judges: SABYASACHI MUKHARJI & S.RANGANATHAN, JJ.
Date of Judgment: Feb 02, 1988
Head Note:
U.P. NAGAR MAHAPALIKA ADHINIYAM, 1959:
Section 172(2)(b) – Notification dated 30th April, 1986 – At what rate the Municipality was to impose octroi duty on the rectified spirit? – Meaning of expression “Foreign imported liquor” – Ordinary people would not consider rectified spirit to be Foreign imported liquor or all kinds of wines made in India – Rectified spirit is dutiable at Re 0.05 per litre and not on the basis that it was foreign wine or liquor.
WORDS AND PHRASES
“Foreign imported liquor” – Meaning of – It would not fit in the description of rectified spirit.
Cases Reffered:
1. Heeralal and Others v. State, AIR 1979 Raj. 133
2. State of U.P. and Others v. Synthetics and Chemical Ltd. etc.etc. AIR 1980 SC 614.
2. State of U.P. and Others v. Synthetics and Chemical Ltd. etc.etc. AIR 1980 SC 614.
Books and Treatises Articles Reffered:
Collins : Dictionary of the English Language
JUDGEMENT:
SABYASACHI MUKHARJI, J.
1. This petition under Article 136 of Constitution for leave to appeal is against the decision of the High Court of Allahabad dated 2nd of November 1987. The question involved here is regarding the levy and realisation of octroi duty by Nagar Mahapalika Bareilly in U.P. Kasturi Lal Satantra Kumar and his partner, respondents herein, by a bid in the auction held for retail vend of country liquor for, excise year 1987-88 ending on March 31, 1988 obtained the necessary licence under the U.P. Excise Act for a group of shops known as Faridpur Group in the district of Bareilly. The auction was held in the month of March 1987. One of the conditions of the auction which also formed part of the licence, was that the licensee would obtain supply of country liquor for retail vend from the bonded warehouse in respect of Bareilly district situated within the limits of Nagar Mahapalika Bareilly.
2. Indubitably the said Kasturi, petitioner in the original writ petition brought into the territory country spirit, the question was at what rate the municipality was to impose octroi duty on the rectified spirit which was brought.
3. It appears that there was a notification dated 30th of April, 1986, published in the U.P. Gazette in exercise of powers under section 172(2)(b) of the U.P. Nagar Mahapalika Adhiniyam 1959. In the schedule forming part of that Notification are mentioned the articles on which the octroi duty is payable and the rates thereof. The articles have been grouped together in different classes from Class I to Class X. Class III which bears the heading “Articles of lighting, fuel, washing and lubricants” contains the following entry as item No.7:
“7. Methylated denatured and rectified spirit…..Rs.0.05 per litre.”
Class VI with the heading “Tobacco and other intoxicating goods” contains the following entry at item No.6:
“6. Foreign imported liquor and all kinds of wines made in India… Re.1 per litre”.
4. It is asserted on behalf of the respondents that the point of entry within the Nagar Mahapalika limits, the plain spirit is nothing but rectified spirit and that Octroi duty could not be charged upon it in excess of Rs. 0.05 per litre under Item No. 7 of Class III of the aforesaid Gazette Notification. The Municipality contends otherwise that it is foreign imported liquor of all kinds of wines made in India. The base for this contention is that for foreign liquor or wine rectified spirit is used . Reliance was placed on a decision of this court in the STATE OF U.P. AND OTHERS VS. SYNTHETICS AND CHEMICAL LTD. ETC ETC.(AIR 1980 SC 614) where this Court observed that the term “liquor” in the various Abkari Acts in the provinces of India would not only cover those alcoholic liquids which are generally used for beverage purposes and produce intoxication but also all liquids containing alcohol, it is therefore, submitted that the payment of octroi duty could not be avoided by the respondents saying that the plain country spirit were not liquor in the sense that it was not fit for human consumption at the stage when it was brought within the limits of the Nagar Mahapalika. The normal meaning of the expressions “foreign imported liquor or all kinds of wines made in India” would not fit in the description of the rectified spirit. Ordinary people would not consider rectified spirit to be Foreign imported liquor or all kinds of wines made in India. That is not the natural meaning as understood by common people. That is the yardstick by which this should be judged. The dictionary meaning also corresponds to the same view. “wine” according to Collins Dictionary of the English language means an alcoholic drink produced by the fermenting of grapes with water and sugar and an alcoholic drink produced in this way from other fruits, flowers etc.
5. By a Common notions it could not be considered that the respondents having regard to the nature of the goods, brought into the territory liquor or wine. The High Court has come to that conclusion after taking into consideration the ordinary notions while giving a meaning to an item contained in the Schedule of articles, the Court should normally give it a meaning intended by framers of the Schedule by looking at the various articles mentioned in a particular group. It appears that Class III of the Schedule in the instant case was intended to deal with the subjects of methylated denatured and rectified spirit which was brought within the limits of the Nagar Mahapalika for use as articles for lighting, fuel, washing and lubricants at the low rate of Rs. 0.05 per litre while liquor brought within its limits for use as an article of intoxication was intended to be subjected to levy of octroi duty at the higher rate of Rs 1/- per litre. Class VI contains the following items:
“Class VI- Tobacco and other intoxicating goods:
1. Field dried tobacco, its chura & roots ordinary tobacco for eating and Huqqa.
2. Scented tobacco for eating and smoking Qimam, Surti, Sugni.
3. Leaves of bidi.
4. Bidi Tobacco, finished bidi, prepared Khamira tobacco.
5. Cigarette, Cigar, foreign type, manufactured tobacco which is smoked through Cigarette and pipe and other such articles.
6. Foreign imported liquor and all kinds of wines made in India.
7. Bear.”
6. The Scheme is formed of the articles mentioned in the various other classes also. The High Court noted class I which deals with articles of food and drinks for men and animals. Item no. 1 of the said class mentions wheat and paddy, its No.6 mentions chemical fodder meant for animals and birds; item No. 16 mentions ice made of water and item no. 17 mentioned all cold drinks like Double Seven, Thumpsup, Limca, Gold-Spot, etc. Likewise, in Class III articles for lighting fuel, washing and lubricants, one finds at item 1 fuel and wood etc.
7. We must reiterate that we are concerned with a duty which is imposed at the time of entry and not how it is used thereafter. The taxable event for the imposition of octroi is the entry and the nature and type of the goods at the point of entry is the relevant factor.
8. We may note that the view was taken by the Rajasthan High Court in HEERALAL AND OTHERS VS. STATE OF RAJASTHAN (AIR 1979 Raj. 133),. Having regard to the nature of the duty and the type of the goods with which we are concerned, we are of the opinion that the rectified spirit is dutiable at the rate of Rs. 0.05 per litre and not on the basis that it was foreign wine or liquor.
9. In the premises, the view taken by the High Court is right. This petition therefore, fails and is accordingly dismissed.
1. This petition under Article 136 of Constitution for leave to appeal is against the decision of the High Court of Allahabad dated 2nd of November 1987. The question involved here is regarding the levy and realisation of octroi duty by Nagar Mahapalika Bareilly in U.P. Kasturi Lal Satantra Kumar and his partner, respondents herein, by a bid in the auction held for retail vend of country liquor for, excise year 1987-88 ending on March 31, 1988 obtained the necessary licence under the U.P. Excise Act for a group of shops known as Faridpur Group in the district of Bareilly. The auction was held in the month of March 1987. One of the conditions of the auction which also formed part of the licence, was that the licensee would obtain supply of country liquor for retail vend from the bonded warehouse in respect of Bareilly district situated within the limits of Nagar Mahapalika Bareilly.
2. Indubitably the said Kasturi, petitioner in the original writ petition brought into the territory country spirit, the question was at what rate the municipality was to impose octroi duty on the rectified spirit which was brought.
3. It appears that there was a notification dated 30th of April, 1986, published in the U.P. Gazette in exercise of powers under section 172(2)(b) of the U.P. Nagar Mahapalika Adhiniyam 1959. In the schedule forming part of that Notification are mentioned the articles on which the octroi duty is payable and the rates thereof. The articles have been grouped together in different classes from Class I to Class X. Class III which bears the heading “Articles of lighting, fuel, washing and lubricants” contains the following entry as item No.7:
“7. Methylated denatured and rectified spirit…..Rs.0.05 per litre.”
Class VI with the heading “Tobacco and other intoxicating goods” contains the following entry at item No.6:
“6. Foreign imported liquor and all kinds of wines made in India… Re.1 per litre”.
4. It is asserted on behalf of the respondents that the point of entry within the Nagar Mahapalika limits, the plain spirit is nothing but rectified spirit and that Octroi duty could not be charged upon it in excess of Rs. 0.05 per litre under Item No. 7 of Class III of the aforesaid Gazette Notification. The Municipality contends otherwise that it is foreign imported liquor of all kinds of wines made in India. The base for this contention is that for foreign liquor or wine rectified spirit is used . Reliance was placed on a decision of this court in the STATE OF U.P. AND OTHERS VS. SYNTHETICS AND CHEMICAL LTD. ETC ETC.(AIR 1980 SC 614) where this Court observed that the term “liquor” in the various Abkari Acts in the provinces of India would not only cover those alcoholic liquids which are generally used for beverage purposes and produce intoxication but also all liquids containing alcohol, it is therefore, submitted that the payment of octroi duty could not be avoided by the respondents saying that the plain country spirit were not liquor in the sense that it was not fit for human consumption at the stage when it was brought within the limits of the Nagar Mahapalika. The normal meaning of the expressions “foreign imported liquor or all kinds of wines made in India” would not fit in the description of the rectified spirit. Ordinary people would not consider rectified spirit to be Foreign imported liquor or all kinds of wines made in India. That is not the natural meaning as understood by common people. That is the yardstick by which this should be judged. The dictionary meaning also corresponds to the same view. “wine” according to Collins Dictionary of the English language means an alcoholic drink produced by the fermenting of grapes with water and sugar and an alcoholic drink produced in this way from other fruits, flowers etc.
5. By a Common notions it could not be considered that the respondents having regard to the nature of the goods, brought into the territory liquor or wine. The High Court has come to that conclusion after taking into consideration the ordinary notions while giving a meaning to an item contained in the Schedule of articles, the Court should normally give it a meaning intended by framers of the Schedule by looking at the various articles mentioned in a particular group. It appears that Class III of the Schedule in the instant case was intended to deal with the subjects of methylated denatured and rectified spirit which was brought within the limits of the Nagar Mahapalika for use as articles for lighting, fuel, washing and lubricants at the low rate of Rs. 0.05 per litre while liquor brought within its limits for use as an article of intoxication was intended to be subjected to levy of octroi duty at the higher rate of Rs 1/- per litre. Class VI contains the following items:
“Class VI- Tobacco and other intoxicating goods:
1. Field dried tobacco, its chura & roots ordinary tobacco for eating and Huqqa.
2. Scented tobacco for eating and smoking Qimam, Surti, Sugni.
3. Leaves of bidi.
4. Bidi Tobacco, finished bidi, prepared Khamira tobacco.
5. Cigarette, Cigar, foreign type, manufactured tobacco which is smoked through Cigarette and pipe and other such articles.
6. Foreign imported liquor and all kinds of wines made in India.
7. Bear.”
6. The Scheme is formed of the articles mentioned in the various other classes also. The High Court noted class I which deals with articles of food and drinks for men and animals. Item no. 1 of the said class mentions wheat and paddy, its No.6 mentions chemical fodder meant for animals and birds; item No. 16 mentions ice made of water and item no. 17 mentioned all cold drinks like Double Seven, Thumpsup, Limca, Gold-Spot, etc. Likewise, in Class III articles for lighting fuel, washing and lubricants, one finds at item 1 fuel and wood etc.
7. We must reiterate that we are concerned with a duty which is imposed at the time of entry and not how it is used thereafter. The taxable event for the imposition of octroi is the entry and the nature and type of the goods at the point of entry is the relevant factor.
8. We may note that the view was taken by the Rajasthan High Court in HEERALAL AND OTHERS VS. STATE OF RAJASTHAN (AIR 1979 Raj. 133),. Having regard to the nature of the duty and the type of the goods with which we are concerned, we are of the opinion that the rectified spirit is dutiable at the rate of Rs. 0.05 per litre and not on the basis that it was foreign wine or liquor.
9. In the premises, the view taken by the High Court is right. This petition therefore, fails and is accordingly dismissed.
