2004 (10) TMI 322

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....h Court dismissing the writ petition filed by the appellant. Challenge was to the levy of octroi by respondent No. 1, Talegaon Dabhade Municipal Council (hereinafter referred to as "Municipal Council") which was established under the Maharashtra Municipal Council Nagar Panchayat and Industrial Township Act, 1965 (in short, "the Act"). Respondent No. 1 Municipal Council proposed to levy octroi in terms of the Maharashtra Municipalities (Octroi) Rules, 1968 (in short, "the Rules"). 2.. The appellant used to import raw material and components into the octroi limits of the Municipal Council. The appellant took the stand that the three items, i.e., plastic powder, plastic components and glass refills were covered under the residuary entry 86 ....

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.... in the background of the concerned items, the heading becomes important. Reference was also made to entry 14(a), 14(b) to contend that it cannot be laid down as a rule of universal application that in matters of levy of octroi, the headings of entries are not relevant. It was also submitted that the appellant has become a sick industry and the proceedings are pending before the Board for Industrial and Financial Reconstruction (in short, "the BIFR"). It was, therefore, submitted that no recovery in respect of concerned amount can be directed. Finally, it was submitted that there is a power for remission of interest and the direction of the High Court to pay interest has to be varied leaving the matter open to Municipal Council to consider ....

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....s shells, require for thermos. 56.. Glass and glassware including bangles, bottles, articles of china and porcelain wares and earthern wares (excluding articles used for construction or decoration of buildings)." 7.. The High Court placed reliance on Asmaco's case (1999) 1 SCC 372. In paragraph 6, it was observed by this Court as follows (page 374): "We may firstly refer to the scheme of bringing several commodities to tax, i.e., the several goods under the Octroi Schedules. In either Rules, several classes of goods are mentioned in various headings like articles of goods, animals, articles used for fuel, lighting, washing and industrial use, articles used in the construction of building, roads and other structures and articles mad....

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....ipal Council that the goods are clearly covered under entry 56. Unfortunately it appears that reference was not made to entry 56 before the High Court. We confirm the High Court's view though on a different basis, i.e., with reference to entry 56.   9.. The effect of section 22 of the SICA has been considered by this Court in Real Value Appliances Ltd. v. Canara Bank (1998) 5 SCC 554 and Rishabh Agro Industries Ltd. v. P.N.B. Capital Services Ltd.† (2000) 5 SCC 515. It has rightly been contended by learned counsel for respondent No. 1 Municipal Council that the effect of section 22 is to be considered only when there is a demand for recovery. The question of recovery would arise only when there is a quantified demand on asses....