TaxTMI 
TaxTMI 
1950 (3) TMI 1
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.... outside tobacco to make bidis. A declaration from signed on his behalf stated that the 254 bags of tobacco liable to octroi duty, which had that day arrived at octroi post No. 3, had been brought for use and consumption within the limits of the Municipality. He, however, in the limits of the Municipality. He, however, put on record his protest against the recovery of the duty which was fixed at Rs. 1,128-2-0. Against the order claiming the amount, the appellant filed an appeal to the Extra Assistant Commissioner with revenue appellate powers, Nagpur. He contended that the Municipality claimed to levy the duty under Section 66(1)(e) of the Municipal Act, but they had no right to do so as under Section 3, Central Excises and Salt Act, 1944, ....
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....xcise duty on it till then. According to the definition of `manufacture' in the Excise Act that duty could be levied at any stage in the manufacture of bidis and therefore any tax imposed, while tobacco was being converted into bidis, was excise duty. Legislation in connection with excise duty is within the exclusive province of the Central Legislature as shown by Entry 45 of List I in Schedule VIII, Constitution Act. The impost of octroi duty in pursuance of the Municipal Act, before tobacco was made into bidis, is it was argued in conflict with the legislative powers of the Centre. In this connection our attention was drawn to Administrator, Lahore Municipality v. Daulat Ram Kanpur, 1942 F.C.R. 31, in which it was held that the levy of oc....
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....95;    *        *         * 8. Section 143 can be considered in two ways. If the Government of India Act did not bring the particular impost of tax by the Provincial Government within the legislative powers of the Centre, by reason of the inclusion of such tax in List I of Schedule 7, the pre-existing right of the Provincial Government to levy such tax remained unaffected. If so, Section 143, Government of India Act did not affect such legislation and the same continued to be valid and operative under Section 292, Constitution Act. If, however, the levy of such tax by the Provincial Government was a subject which was within t....
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....s v. B. Paidanna and Sons, 1942 F.C.B. 90 = 1978 (2) E.L.T. (J 272). It is there observed as follows : *        *        *        * The Court further observed that in the Constitution Act the whole of the taxing power in this particular sphere (power to impose duties of excise) is expressly apportioned between the Centre and Provinces, to the one being assigned the power to impose duties of excise, to the other taxes on the sale of goods. It is natural enough, when considering the ambit of an express power in relation to an unspecified residuary power, to give a broad interpretation to the for....
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.... reaches the stage of manufacture mentioned in Item 9 of the Schedule to the Excise Act. Even before it is converted into bidis or any other article mentioned in the entry it has become excisable goods and liable to pay excise duty. The levy of such duty is therefore not in conflict with the levy of an impost on the entry of the goods within a certain area. 12. It was argued that under the rules framed by the Government under the Central Excises and Salt Act 1944, Government retained control over the movement of the goods from the beginning till the end. This argument is not of assistance in determining the nature of the octroi tax. As Government has to collect excise duty and the rate of duty varies in respect of different shapes ....