TaxTMI 
TaxTMI 
1989 (12) TMI 324
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....ew of the proviso to rule 131 of the Octroi Rules contained in the U.P. Municipal Account Code, 1925. This was countered by the appellant stating that the rule 131 was superseded by the 1963 rules which govern the imposition of octroi by the appellant-Board. The single Judge in allowing the writ petitions took the view that rule 131 restricted the power of the Board to impose the octroi and the subject- matter of the rule is not covered by the 1963 rules. The appeals preferred were dismissed by the Division Bench of the High Court agreeing that the bar under rule 131 regarding the imposition of octroi duty on mineral oils continued notwithstanding the 1963 rules. 3.. The appellant is a Municipal Board governed by the provisions of the U.P. Municipalities Act, 1916 (hereinafter referred to as "the Act"). Section 128 of the Act provides for imposition of taxes by a Municipal Board. The relevant part of the said section reads as under: "128. Taxes which may be imposed.-(1) Subject to any general rules or special orders of the State Government in this behalf, the taxes which a board may impose in the whole or any part of a municipality are- (i) * * * (viii) an octroi ....
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....ities Act, 1916 (U.P. Act No. II of 1916), is published as required by sub-section (1) of section 300 of the said Act, for the information of all concerned with a view to invite objections and suggestions in respect thereof ". 9.. Final rules were notified vide Notification dated the 7th May, 1963 and published by the Government in the U.P. Gazette dated the 11th May, 1963, as required under section 300 of the Act. 10.. By Notification dated the 24th July, 1963, published in the U.P. Gazette dated the 3rd August, 1963, the appellant-Board imposed octroi duty on goods and animals brought within the octroi limits of Bareilly Municipality for consumption, use and sale at the rates shown in the Schedule to the said notification and subject to the exceptions contained therein. Item 29 of the exceptions contained in the Schedule related to "mineral oils" classified as motor spirit, kerosene and diesel oil. The said notification came into operation from 16th November, 1963. Thereafter the levy of octroi in the Bareilly Municipality was governed by 1963 rules. Amendments were made in the octroi Schedule both in the rates as well as in the exemption and as a result thereof motor sp....
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....that can be raised in exercise of delegated power are predetermined and procedure is prescribed by the Municipal Act. Thus section 128 of the U.P. Municipalities Act confers on the municipalities in the State the power to levy taxes enumerated thereunder. The power conferred is not absolute but is subject to any general rules or special orders of the State Government in this behalf. Section 128(1) does not confer any independent rule-making power. The general rules referred to in that section can only be the rules in the matter of such levy specified in section 153 of the Act and framed in exercise of the power under section 296 of the Act. The State Government is empowered under section 296 to make rules consistent with the Act in respect of matters described in section 153. Rules framed under section 153 constitute the exclusive machinery for assessment and collection of taxes. The relevant part of section 153 reads as under: "153. Rules as to assessment, collection and other matters.-The following matters shall be regulated and governed by rules except in so far as provision therefor is made by this Act, namely: (a) the assessment, collection or composition of taxes, and,....
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....dditional taxation, Boards are reminded that the necessary rules for the assessment and collection of the taxes to be imposed should be forwarded at the same time as the tax proposals, and it will facilitate the disposal of such cases if any deviations from the model forms printed below are specifically referred to in the proposals submitted." Vol. II contains the Municipal Account Code. Chapter X deals with octroi and provides in rule 131 that subject to the exceptions contained in the proviso, octroi shall ordinarily be levied on commodities included in the list. In Mool Chand v. Municipal Board, Banda AIR 1926 All. 517, it was held that the rules contained in the Code have as much force of law as the Act itself. The octroi rules contained in Chapter X of the Municipal Account Code are general rules framed by the State Government in respect of matters referred to in section 153 in exercise of power under section 296 and refer to the levy and govern the assessment, collection, etc. The rules are general for all municipalities. The 1963 rules are framed for the appellant-Board expressly superseding the general rules in so far as they apply to the appellant-Board. By framing the ....