{"id":118360,"date":"1996-04-24T00:00:00","date_gmt":"1996-04-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/fertilizer-corporation-of-vs-nagar-mahapalika-gorakhpur-on-24-april-1996"},"modified":"2017-04-08T03:29:35","modified_gmt":"2017-04-07T21:59:35","slug":"fertilizer-corporation-of-vs-nagar-mahapalika-gorakhpur-on-24-april-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/fertilizer-corporation-of-vs-nagar-mahapalika-gorakhpur-on-24-april-1996","title":{"rendered":"Fertilizer Corporation Of … vs Nagar Mahapalika. Gorakhpur on 24 April, 1996"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Fertilizer Corporation Of … vs Nagar Mahapalika. Gorakhpur on 24 April, 1996<\/div>\n
Equivalent citations: JT 1996 (4), 488\t 1996 SCALE (3)809<\/div>\n
Author: M S V.<\/div>\n
Bench: Manohar Sujata (J)<\/div>\n
           PETITIONER:\nFERTILIZER CORPORATION OF INDIALTD., GORAKHPUR\n\n\tVs.\n\nRESPONDENT:\nNAGAR MAHAPALIKA. GORAKHPUR\n\nDATE OF JUDGMENT:\t24\/04\/1996\n\nBENCH:\nMANOHAR SUJATA V. (J)\nBENCH:\nMANOHAR SUJATA V. (J)\nPUNCHHI, M.M.\n\nCITATION:\n JT 1996 (4)   488\t  1996 SCALE  (3)809\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n
\t\t      J U D G M E N T
\nMrs. Sujata V. Monohar. J.\n<\/p>\n
     Delay in filing supplementary affidavit is condoned .
\n     The appellant,  Fertilizer corporation of India carries
\non the\tbusiness of  manufacturing  fertilizers.  It  has  a
\nfactory situated  at Gorakhpur.\t Prior to  1982, the area in
\nwhich the  factory of the appellant is situated, was outside
\nthe city  limits of Gorakhpur. This area was governed by the
\nU.P. Town  Areas Act,  1914  and  it  had  a  Notified\tArea
\nCommittee  constituted\tunder  this  act  to  discharge\t the
\nfunctions specified  under this\t Act The  city of Gorakhpur.
\nprior to  16.11.1981, had  a municipality  constituted under
\nthe  U.P.   municipalities  Act,   1916.  With\teffect\tfrom
\n16.11.1981, by reason of a notification issued under Section
\n3(1) of\t the U.P. Nagar Mahapalika Adhiniyam. 1959. the city
\nof  Gorakhpur\tceased\tto   be\t  governed   by\t  the\tU.P.
\nmunicipalities Act  of 1916  and became\t a Nagar  Mahapalika
\ngoverned by  the Uttar\tPradesh Nagar  Mahapalika Adhiniyam,
\n1959.\n<\/p>\n
     Thereafter the area in which the appellant’s factory is
\nsituated was  brought within  the limits  of Gorakhpur\tcity
\nwith effect  from 15th\tof June,  1982.\t by  a\tnotification
\nissued under  Section 3(2)  of\tthe  U.P.  Nagar  Mahapalika
\nAdhiniyam, 1959 (hereinafter referred to as the Adhiniyam of
\n1959). As  a result.  the area\tin which  the factory of the
\nappellant  is  situated,  which\t was  previously  under\t the
\njurisdiction of\t the Notified Area Committee, came under the
\njurisdiction of the Nagar Mahapalika of Gorakhpur city.\n<\/p>\n
     The dispute  in these  appeals relates  to the levy and
\nrecovery  of  octroi  from  the\t appellant  for\t the  period
\n7.4.1979 to 22.12.1982. A sum of Rs.2.19 lakhs was recovered
\nfrom the  appellant by the Notified Area Committee by way of
\noctroi for  the period\t7.4.1979 to 14.6.1982, and an amount
\nof Ps.4.78  lakhs was  recovered by  the Nagar Mahapalika of
\nGorakhpur  city\t  by  way   of\toctroi\t from  14.6.1982  to
\n22.12.1982.  It\t  is  the   contention\tof   the  appellant-
\nCorporation that  it is\t not liable  to pay  octroi for\t the
\nperiod 7.4.1979\t to 15.6.1982  or for any period thereafter.
\nThe appellant  made a representation to the Administrator of
\nthe Mahapalika\tclaiming refund\t of the\t octroi paid for the
\nsaid   periods\t  but\tthe   Administrator   rejected\t the
\nrepresentation. The  appellant thereafter filed petitions in
\nthe Court  of Small  Causes under  Section 472\tof the\tsaid
\nAdhiniyam  of\t  1959.\t These\tpetitions  were\t allowed  on
\n30.8.1982 and the appellant was granted refund of the octroi
\npaid as\t also a\t permanent injunction  restraining the Nagar
\nMahapalika   from recovering octroi. The Nagar Mahapalika of
\nGorakhpur preferred  two appeals  against these\t orders, The
\nDistrict Judge,\t however, dismissed  these  appeals  by\t his
\norder dated  4.10.1986. The  order the\tDistrict  Judge\t was
\nchallenged by  the Nagar  Mahapalika of\t Gorakhpur  city  by
\nfiling two  writ petitions  before the\tAllahabad High Court
\nThe High  Court by  its judgement  and order dated 7.12.1987
\nallowed these writ petitions. Hence the present appeals have
\nbeen filed by the appellant before us.\n<\/p>\n
     We have to examine Whether octroi was validly collected
\nfrom the  appellant for the aforesaid periods I. 7.4.1979 to
\n14.6.1982
\n     Prior to\t7.4.1979 the Notified Area Committee had the
\npower to levy octroi under the U.P. Town Areas Act, 1914.\n<\/p>\n
     On 7th  of April,\t79, the\t Uttar Pradesh\tUrban  Local
\nSelf-Government\t Laws\t(Amendment)  Ordinance,\t  1979\t was
\npromulgated which has  been subsequently replaced by an Act.
\nThis Ordinance\t6  of  1979  made  amendments  to  the\tU.P.
\nMunicipalities Act,  1916, as  also the U.P. Town Areas Act.
\n1914. By reason of Section 3 of the said Ordinance. the U.P.
\nTown Areas  Act. 1914 was amended. As a result, the power of
\na Notified  Area Committee  under the  U.P. Town  Areas Act,
\n1914, to levy. inter alia, octroi was taken away.\n<\/p>\n
     Prior to  the said\t Ordinance. the\t Notified Town\tArea
\nCommittee, under  Section 14(1)(g)  of the  U.P. Town  Areas
\nAct. 1914  had the  power to  impose any  tax  mentioned  in
\nSection 128(1)\tof the\tU.P. Municipalities  Act. 1916. This
\nincluded the  power to\tlevy octroi  which was\tprovided for
\nunder Section  128(1)(viii) of\tthe U.P. Municipalities Act.
\n1916. By reason of the amendment made by the said Ordinance,
\nthe power  to levy , a tax mentioned in Section 128(1)(viii)
\nof the U.P. Municipalities Act, 1916 was taken away from the
\nNotified Area  Committees under\t the U.P.  Town\t Areas\tAct,
\n1914.\n<\/p>\n
     Therefore, with  effect from 7.4.1979 the Notified Area
\nCommittee had  no power\t to levy and collect octroi from the
\nappellant. this\t position continued  upto 14.6.1982 when the
\narea which  was under  the jurisdiction of the Notified Area
\nCommittee became  a part  of the Gorakhpur Nagar Mahapalika.
\nClearly. therefore.  the sum of Rs.2.19 lakhs which has been
\ncollected by the Notified  Area Committee from the appellant
\nfor the\t period\t   7.4.1979  to\t 14.6.1982  is\tWithout\t the
\nauthority of law.\n<\/p>\n
II. 15.61982 to 22.12.1982
\n     From 15.6.1982,  the area\tin which  the factory of the
\nappellant is  situated become  a part  of Gorakhpur    Nagar
\nMahapalika. It is the contention of the respondent that even
\nwhen Gorakhpur\tcity  had  a  municipality  under  the\tU.P.
\nMunicipalities Act, 1916, octroi was being validly levied in
\nGorakhpur city.\t After\tthe  Gorakhpur\tCity\tMunicipality
\nbecame Gorakhpur  Nagar Mahapalika  under the  Adhiniyam  of
\n1959.  octroi  was  continued  in  the\tcity  of  Gorakhpur.
\nTherefore,  when  the  Nagar  Mahapalika  of  Gorakhpur\t was
\nextended to  the area  in which the factory of the appellant
\nis situated,  this  area  also\tbecame\tsubject\t to  octroi.
\nTherefore. the\tappellant is  bound and liable to pay octroi
\nfrom 15.6.1982.\t This submission  has been challenged by the
\nappellant.\n<\/p>\n
     Now, under\t sub-section (2)  Section 3 of the Adhiniyam
\nof 1959\t ( as  it stood\t at the\t relevant time\t), the State
\nGovernment may\tfrom time  to time,  after consultation with
\nthe Mahapalika,\t by a  notification in the official Gazette,
\nalter the  limits specified  for any  city under sub-section
\n(1) so\tas to  include or  to exclude therefrom such area as
\nmay be specified accordingly a notification was issued under
\nSection 3(2).  As a  result, as\t from 15th of June, 1982 the
\nArea in which the appellant’s factory is situated came to be
\nincluded in  the limits\t of Gorakhpur  city. Section 3(4) of
\nthe said Adhiniyam of 1959 provides as follows :\n<\/p>\n
     “3(4);  Where   by\t   reason  of  a
\n     notification under sub-section (2),
\n     any area  is  included  in\t a  city
\n     declared under subsection (1), such
\n     area shall\t thereby become\t subject
\n     to\t  all\t notifications,\t  rules.\n<\/p>\n
     regulations,    bye-laws.\t  orders
\n     directions\t issued\t or  made  under
\n     this or  any other enactment and in
\n     force  in\tthe  city  at  the  time
\n     immediately preceding the inclusion
\n     of such  area, and\t all taxes  fess
\n     and charges imposed under this Act,
\n     shall be  and continue to be levied
\n     and  collected   in  the  aforesaid
\n     area.”\n<\/p>\n
     Therefore. by  reason of  sub-section (4) of Section 3.
\nonce the  area in  which the appellant’s factory is situated
\nis included  in Gorakhpur  city, all  notifications.  rules.
\nbye-laws etc.  of Gorakhpur  city  in  force.  automatically
\napply to  the freshly included area; and all taxes. fees and
\ncharges imposed\t under\tthe  Adhiniyam\tcan  be\t levied\t and
\ncollected from the newly included area.\n<\/p>\n
     Section 3(4), however. was not in existence at the time
\nwhen the  appellant’s factory area was included in Gorakhpur
\ncity. Section  3(4) has\t been inserted in the said Adhiniyam
\nof 1959\t by reason  of the  Uttar Pradesh  Local Urban Self-
\nGovernment Laws\t (Amendment) Act,  1987, being U.P. Act 3 of
\n1987. Section  6 of  the Amending Act which adds Section (4)
\nto the\tU.P. Adhiniyam\tof 1959\t provides that\tsection 3(4)
\nshall be and shall always be deemed to have been inserted in
\nthe  said   Adhiniyam.\ttherefore.  Section  3(4)  has\tbeen
\ninserted with  retrospective effect  and will  apply to\t the
\nlevy and  collection of\t octroi in  the newly  included area
\nwith effect  from 15th of June. 1989. Section 18 of the said
\nAmending Act 3 of 1987 further provides\t as follows :\n<\/p>\n
     “18(l)\tNotwithstanding\t     any
\n     judgment, decree  or order\t of  any
\n     court of  other  authority\t to  the
\n     contrary, any tax. fee or collected
\n     levied.  charged  or  collected  or
\n     purporting\t to  have  been\t levied,
\n     charged  or  collected  before  the
\n     commencement of  the Uttar\t Pradesh
\n     Urban  Local  Self-Government  Laws
\n     (Amendment)  Act.\t 1987  and   any
\n     action taken  or thing  done before
\n     such commencement\tin  relation  to
\n     the assessment.  reassessment, levy
\n     or collection  of such  tax, fee or
\n     charge under  the provisions of the
\n     principal\tAct   referred\t to   in
\n     Chapter IV\t or Chapter  V,\t as  the
\n     case may  be, and\tthe  rules  made
\n     thereunder shall  be deemed  to  be
\n     valid  and\t effective  as\tif  such
\n     assessment, reassessment.\tlevy  of
\n     collection or  action or  thing had
\n     been made,\t taken or done under the
\n     principal\tAct   referred\t to   in
\n     Chapter IV or Chapter V as the case
\n     may   be, as  amended by  the Uttar
\n     Pradesh Urban Local Self-Government
\n     Laws (Amendment)  Act, 1987 and the
\n     rules and bye-laws made thereunder.\n<\/p>\n
     (2) for  the removal  of doubts, it
\n     is hereby\tdeclared that nothing in
\n     sub-section (1)  shall be construed
\n     as preventing any person –\n<\/p>\n
     (a)   from\t  the\tQuestioning   in
\n     accordance with  the provisions  of
\n     the principal  Act referred  to  in
\n     Chapter IV\t or Chapter  V.\t as  the
\n     case may be as amended by the Uttar
\n     Pradesh Urban Local Self-Government
\n     Laws  (Amendment)\tAct.  1987,  any
\n     assessment, re-assessment.\t levy or
\n     collection of any tax fee or charge
\n     referred to in sub-section (1): or\n<\/p>\n
     (b) from  claiming\t refund\t of  any
\n     amount paid by him in excess of the
\n     amount due\t from him  by way of any
\n     tax.  fee\t or  charge   under  the
\n     principal\tAct   referred\t to   in
\n     Chapter IV\t or Chapter  V,\t as  the
\n     case may be as amended by the Uttar
\n     Pradesh Urban Local Self-Government
\n     Laws (Amendment) Act, 1987.\n<\/p>\n
     Therefore, any  tax, fee  or charge  levied, charged or
\ncollected before the Amending  Act 3 of 1987 shall be deemed
\nto be  as valid\t and effective\tas if  such assessment.\t re-
\nassessment. levy  or collection had been done under the said
\nAdhiniyam of  1959 as amended by the Amending Act 3 of 1987.
\nBy reason  of these retrospective amendments. it is not open
\nto the\tappellant to  challenge the  imposition of octroi in
\nthe extended area of Gorakhpur city with effect from 15th of
\nJune. 1982.\n<\/p>\n
     In the  case of  Hindustan Gum  and Chemicals  Ltd.  v.
\nState of  Haryana &  Ors.<\/a> (1985\t (4) S.C.C  124. the factory
\npremises of the appellant were included within the municipal
\nlimits of’  Bhiwani by\ta notification dated 10th of August,
\n1965. issued under Section 5(3) of the Punjab Municipal Act.
\n1911.\tSub-section   (4)   of\t Section   5   was   amended
\nretrospectively by  the Punjab\tMunicipal (Haryana Amendment
\nand Validation)\t Act, 1971,  whereby the levy and collection
\nof octroi  in the  extended area  were\tvalidated.  In\tsub-
\nsection\t   (4).\t   the\t  expression\t“notification\t was
\nretrospectively added  thereby including  within its scope a
\nnotification imposing  octroi which would only automatically
\napply with  retrospective effect  to the extended area. This
\nCourt held that the reason of the retrospective amendment of
\nSection 5(4).  imposition of octroi in the extended area was
\nvalid from the date when the new area became included within
\nthe municipal limits. The facts of the present case are very
\nsimilar to  this case.\tTherefore, by reason of the Amending
\nand Validating\tAct 3  of 1987.\t the levy  and collection of
\noctroi in the extended area of Gorakhpur city must be upheld
\nwith effect from 15.6.1982.\n<\/p>\n
     In the  case of Bhaskar Textile Mills Ltd v. Jharsuguda
\nMunicipality &\tOrs<\/a> (1984  (2) SCC  25, para  20), a similar
\nprovision in Section 5 of the Orissa Municipal Act. 1950 was
\nconsidered by  this Court.  Section 5  which is\t worded in a
\nmanner similar\tto Section  3(4) which\tis before  us. inter
\nalia, provided\tthat any bye-law immediately in force before
\nthe inclusion  of new  area shall be deemed to apply to such
\nnew  area.   The  Court\t  said\tthat  when  the\t area  of  a
\nmunicipality is\t extended to  cover a new area. the existing
\nmunicipal bye-laws  automatically apply to the extended area
\nand no\tseparate steps as prescribed under the Municipal Act
\nare necessary  to be  taken before applying such bye-laws to
\nthe extended area. It was contended before this Court in the
\nabove case  that when  the Municipal  Act requires  specific
\nstep to\t the before bye- laws can be enacted and enforced in
\nthe municipal  area is\textended to  cover new areas. It was
\ncontended that\tthe bye-laws  will not be enforceable in the
\nnew area  without such\tsteps being taken. This argument was
\nnegatived by this court in view of the provisions of Section
\n5 of  the Orissa  municipal  Act  of  1950.  Following\tthis
\ndecision, the argument of the appellant that procedure under
\nSections 199  to 219  of  the  adhiniyam  of  1959  must  be
\nfollowing for  imposing octroi in the extended area, must be
\nrejected.\n<\/p>\n
     The  appellant   next  contended  that  even  prior  to
\n15.6.1982 octroi was not validly levied and collected in the
\noriginal  Gorakhpur   city.  The  appellant  contended\tthat
\nprocedure under\t Section 199 to 219 of the said Adhiniyam of
\n1959 was  at no\t time followed for the levy of octroi in the
\noriginal Gorakhpur  city. Hence octroi could not be extended
\nto the newly included area of t he appellant’s factory after
\n15.6.1982. According  to the respondent, however. even prior
\nto  16.4.1981.\t (when\tthe   Adhiniyam\t  of   1959   became
\napplicable).  under   the  U.P.\t Municipalities\t Act,  1916.
\nSection\t 128(1)(viii)\tauthorized   the   municipality\t  of
\nGorakhpur to  levy octroi. the municipality of Gorakhpur had
\nlevied octroi  . When the municipality of Gorakhpur city was
\nsucceeded by the Mahapalika of Gorakhpur city under the said
\nAdhiniyam of  1959 with\t effect from 16.4.1981, the existing
\noctroi was  continued. Section\t577 of the said Adhiniyam of
\n1959.  inter   alia,  provides\t that  any   tax,  bye-laws,
\nregulation etc.\t imposed under\tthe U.P. Municipalities Act,
\n1916, shall,  in so  far as it is not’ inconsistent with the
\nprovisions of  the Adhiniyam.  continue in force until it is
\nsuperseded by  any tax\tetc. imposed  under the Adhiniyam of
\n1959. The respondent. therefore. rightly submits that it was
\nnot required  to follow\t the procedure under Sections 199 to
\n219 of\tthe said  Adhiniyam of 1959 as octroi was not levied
\nunder the  Adhiniyam of\t 1959. It  was\tlevied\tearlier\t and
\ncontinued under\t Section 577  when Gorakhpur city came under
\nthe Adhiniyam  of 1959.\t Octroi which  was imposed under the
\nU.P. Municipalities Act. 1916 remained in force. This octroi
\nwas, levied  and collected  from the  extended area when the
\nextends area became a part of Gorakhpur city.\n<\/p>\n
     It was  also contended  by the appellant that by reason
\nof the\tUttar Pradesh  Urban  Local  Self-  Government\tLaws
\n(Amendment) Ordinance.\t1979 referred  to earlier, the power
\nto levy\t octroi under  the U.P. Municipalities Act, 1916 was
\nalso taken  away. just as it was taken away in the case of a
\nNotified Area Committee under the U.P. Town Areas Act. 1914.
\nThis contention,  however. has\tno merit.  Section 2  of the
\nsaid  Ordinance\t  deals\t  with\t amendment   to\t  the\tU.P.
\nMunicipalities Act, 1916. lt substitutes tor clause (vii) of
\nsub-section (l)\t of Section 128, a new clause (vii) which is
\nset out\t there. This clause deals with imposition of a toll.
\nClause (viii) of sub-section (1) of Section 128, which deals
\nwith the imposition of octroi, is not in any manner affected
\nby the said ordinance of 1979.\n<\/p>\n
     The Ordinance,  however, also amends Section 338 of the
\nU.P. Municipalities Act. 1916. It is this amendment which is
\nrelied upon  by the  appellant.\t Section  338  of  the\tU.P.
\nMunicipalities\t Act,  1916  deals  with  the  extension  of
\ncertain\t enactments  to\t and  imposition  of  taxes  in\t and
\nconstitution of\t committees for\t notified areas. It provides
\nthat the State Government may by notification apply or adopt
\nto a notified area the Provisions of any section of this Act
\nor impose  in the  whole or a part of such notified area any
\ntax which  might he imposed under the provisions of the U.P.
\nMunicipalities Act,  1916 as  if the  notified area  were  a
\nmunicipality. To this the Ordinance has made an amendment by
\ncarving out  an exception.  It has  provided that  the taxes
\nwhich can  be so  imposed on  a notified area shall be taxes
\nother than  those taxes\t referred to  in clauses  (vii)\t and\n<\/p>\n
(viii) of  sub-section (1) of Section 128. These two clauses
\ndeal with  toll and  octroi. The  amendment thus. takes away
\nthe right  to impose  octroi in\t any notified area. Notified
\narea is\t described in  Section 337  as an  area other than a
\nmunicipality. town area or agricultural village which may be
\nso notified by the State Government by a notification as set
\nout therein.  In such  a  notified  area  octroi  cannot  be
\nimposed under  Section 338  as\tamended\t by  the  Ordinance.
\nSection 338 has no application to a municipality constituted
\nunder the U.P. Municipalities Act, 1916. Such a municipality
\nhas and\t continues to  have the power to impose octroi under
\nSection\t 128(1)(viii)  of  the\tsaid  Act.  the\t contention.
\ntherefore,  that   the\tGorakhpur   municipality  prior\t  to
\n16.4.1981 had  no power\t to levy  octroi must  be  rejected.
\noctroi was  validly levied  and imposed\t in  Gorakhpur\tcity
\nunder the  U.P. Municipalities Act, 1916 and it continued to
\nthe validly  levied when  Gorakhpur city came to be governed
\nby the\tU.P. Adhiniyam of 1959. Hence octroi was leviable in
\nthe extended area which became a part of Gorakhpur city With
\neffect from 15.6.1982.\n<\/p>\n
     To sum  up. the Notified Area Committee had no power to
\nlevy and  collect octroi from the appellant from 7.4.1979 to
\n14.6.1982 by  virtue of\t the said  Ordinance 6\tof 1979. But
\nwith effect  from 15.631982  the  Gorakhpur  Mahapalika\t has
\nvalidly levied octroi on the appellant.\n<\/p>\n
     The respondent  has tried\tto justify the collection of
\noctroi\tby  the\t Notifies  Area\t Committee  for\t the  period
\n7.4.1979 to 14.6.1982 on basis of Section 18 of the Amending
\nAct 3  of 1987.\t The respondent\t contends that\tby reason of
\nSection 18  of the  Amending Act of 1987  which has been set
\nout earlier  any purported  levy and  collection of  tax has
\nbeen validated.\t A perusal  of Section 18. however. makes it
\nclear that  what  is  validated\t is  a\tpurported  levy\t and
\ncollection of  octroi under  the provisions of the principal
\nActs referred  to in  Chapters IV or V of the Amending Act 3
\nof 1987.  These two  chapters of the said U.P. Act 3 of 1987
\ndeal  with   the  said\t Adhiniyam  of\t1959  and  the\tU.P.
\nMunicipalities\t Act.\t1916   respectively.   Section\t 18.
\ntherefore. will\t not validate  a purported  levy  of  octroi
\nunder the  U.P. Town  Areas Act. 1914 levied by the Notified
\nArea Committee.\n<\/p>\n
     It is  lastly, submitted by the appellant that it is by
\nvirtue of  the retrospective  introduction of subsection (4)
\nof Section 3 in the said Adhiniyam of 1959 that the levy and
\ncollection of  octroi  from  15.6.1982\tis  validated.\tThis
\nretrospective imposition  puts an unreasonable burden on the
\nappellant. The\tappellant has relied upon a decision of this
\nCourt in  J.K. Cotton Spinning and Weaving Mills Ltd. & Anr.
\nv. Union  of India  & Ors.<\/a>  [1988 (1) SCR 700 AT 713]  where
\nthis Court  has said  in Connection  with the  retrospective
\nlevy  of   excise  duty,   that\t the  period  of  limitation
\nprescribed under Section 11A of the Central Excises and Salt
\nAct. 1944  would apply\teven  to  the  levy  and  collection
\nretrospectively of  excise duty.  The ratio of this judgment
\ncannot apply  to the  present case  since we  have not\tbeen
\nshown any  provision similar  to Section  11A  in  the\tsaid
\nAdhiniyam   of 1959. What is more. in the present case. from
\nJanuary 1983  to 7.12.1987,  which is  the date\t of the High
\nCourt judgment.\t the collection\t of octroi by the respondent
\nwas stayed by reason of court orders. Therefore, all that we
\ncan observe is, that the respondent shall collect octroi for
\nany period  subsequent to  in accordance with the provisions
\nof law.\t But the  respondent who  is the  successor  of\t the
\nNotified   Area Committee,  is also  liable to refund to the
\nappellant  octroi  collected  for  the\tperiod\t7.4.1979  to
\n14.6.1982 Looking  to the fact that the appellant has closed
\nits unit.  it will  be open  to the respondent to adjust the
\namount of  octroi refundable  to the  appellant against\t the
\nliability of  the appellant  to\t pay  octroi  for  a  period
\nsubsequent to  22.12.1982 the  respondent  is  entitled,  in
\naccordance with\t law. to  collect such\toctroi\tfor  periods
\nsubsequent to 22.12.1982.\n<\/p>\n
     The appeals are accordingly partly allowed. There will.
\nhowever. be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Fertilizer Corporation Of … vs Nagar Mahapalika. Gorakhpur on 24 April, 1996 Equivalent citations: JT 1996 (4), 488 1996 SCALE (3)809 Author: M S V. Bench: Manohar Sujata (J) PETITIONER: FERTILIZER CORPORATION OF INDIALTD., GORAKHPUR Vs. RESPONDENT: NAGAR MAHAPALIKA. GORAKHPUR DATE OF JUDGMENT: 24\/04\/1996 BENCH: MANOHAR SUJATA V. (J) BENCH: MANOHAR […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-118360","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nFertilizer Corporation Of ... vs Nagar Mahapalika. 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