State of Rajasthan And Others Vs. Novelty Store And Others
EmailAppeal: Civil Appeals No. 5043 of 1984 with Nos. 5044, 5042 of 1984 and 300 of 1993, 5045, 4887-94 of 1984
Petitioner: State of Rajasthan And Others
Respondent: Novelty Store And Others
Apeal: Civil Appeals No. 5043 of 1984 with Nos. 5044, 5042 of 1984 and 300 of 1993, 5045, 4887-94 of 1984
Judges: K. RAMASWAMY & N. VENKATACHALA, JJ.
Date of Judgment: Dec 13, 1994
Head Note:
MUNICIPALITIES
Octroi – Refund – Burden shown to have been passed on to consumers. Held that order of refund would cause unjust enrichment. Hence, orders set-aside. Appeal allowed.
JUDGEMENT:
ORDER
The orders of the High Court in the impugned appeals are to be set aside on the sole ground that the respondents after paying octroi duty have passed on the burden to the consumers and collected from the customers on the cloth purchased and sold by them. Therefore, the order of refund would be an unjust enrichment for them. This Court has repeatedly held that such a refund should not be ordered. In that view of the matter without expressing any opinion on the merits during the interregnum the Gram Panchayat was entitled to collect the octroi since the respondents are not entitled to the refund of the amount which is already collected and passed on the burden to the consumers, these appeals are to be allowed. The appeals are accordingly allowed and the writ petitions in the High Court stand dismissed.
The orders of the High Court in the impugned appeals are to be set aside on the sole ground that the respondents after paying octroi duty have passed on the burden to the consumers and collected from the customers on the cloth purchased and sold by them. Therefore, the order of refund would be an unjust enrichment for them. This Court has repeatedly held that such a refund should not be ordered. In that view of the matter without expressing any opinion on the merits during the interregnum the Gram Panchayat was entitled to collect the octroi since the respondents are not entitled to the refund of the amount which is already collected and passed on the burden to the consumers, these appeals are to be allowed. The appeals are accordingly allowed and the writ petitions in the High Court stand dismissed.
