Special municipal rules can supersede general octroi rules, leaving the statutory taxing power intact for mineral oils.

Section 128(1)(viii) of the U.P. Municipalities Act, 1916 conferred the power to impose octroi, while the rules under sections 153 and 296 governed assessment and collection. The 1925 octroi rules were general in nature, but the 1963 rules were specially framed for Bareilly Municipality and expressly superseded the earlier rules for that municipality. On that basis, rule 131 of the 1925 Municipal Account Code ceased to apply to Bareilly Municipality and could not restrict the statutory power to levy octroi. The notification dated 27 August 1969 was therefore sustained and the levy on mineral oils was upheld.

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Issues: Whether the Bareilly Municipality had authority to levy octroi on mineral oils after the 1963 octroi rules were framed in supersession of the earlier general octroi rules, and whether the restriction contained in rule 131 of the 1925 Municipal Account Code continued to bar such levy.

Analysis: The power to impose octroi was conferred by section 128(1)(viii) of the U.P. Municipalities Act, 1916, while the rules under sections 153 and 296 regulated assessment, collection and related matters. The 1925 octroi rules were general rules, but the 1963 rules were specially framed for the Bareilly Municipality and expressly superseded the earlier rules insofar as they applied to that municipality. Once the later special rules covered the same subject and were made in supersession of the existing rules, the earlier rule 131 ceased to operate for Bareilly Municipality. The restriction in the proviso to rule 131 could not therefore curtail the statutory power to impose octroi under section 128.

Conclusion: The Bareilly Municipality had authority to levy octroi on mineral oils, and the challenge to the notification dated 27 August 1969 failed.

Ratio Decidendi: Where special rules validly framed for a particular municipality expressly supersede earlier general rules on the same subject, the earlier rules cease to apply to that municipality, and the statutory taxing power remains unaffected unless taken away by the parent Act.

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