{"id":43476,"date":"1952-06-18T00:00:00","date_gmt":"1952-06-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/anant-sadashiv-vs-ratnagiri-jilha-district-local-on-18-june-1952"},"modified":"2016-01-31T18:25:52","modified_gmt":"2016-01-31T12:55:52","slug":"anant-sadashiv-vs-ratnagiri-jilha-district-local-on-18-june-1952","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/anant-sadashiv-vs-ratnagiri-jilha-district-local-on-18-june-1952","title":{"rendered":"Anant Sadashiv vs Ratnagiri Jilha (District) Local &#8230; on 18 June, 1952"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">Anant Sadashiv vs Ratnagiri Jilha (District) Local &#8230; on 18 June, 1952<\/div>\n<div class=\"doc_citations\">Equivalent citations: AIR 1953 Bom 71, (1952) 54 BOMLR 841, ILR 1953 Bom 134<\/div>\n<div class=\"doc_bench\">Bench: Chagla<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>(1) This revision application raises a short but rather interesting question as to the competency of a district local board to levy octroi duty. The petitioner sent certain goods from Sawantwadi to Kunkeri and the district local board of Ratnagiri levied octroi duty on these goods when they entered Kunkeri. Kun-Keri is in the Ratnagiri District and after merger Sawantwadi has also become part of the Ratnagiri District. The plaintiff filed a Small Cause Court suit for recovery of the amount which he had paid under protest as octroi duty and the Small Cause Court Judge dismissed the suit holding that the duty had been properly levied. It is from that decision that this revision application is preferred.  <\/p>\n<p> (2) Now, the duty has been levied under rules framed by the District Local Board of Ratnagiri and in these rules &#8220;octroi&#8221; is defined as a tax on goods brought within the octroi limits for the purpose of consumption, use or trade therein, and &#8220;octroi limits&#8221; is defined as the whole of the area subject to the jurisdiction of the Board under Section 4 of the Act. It cannot be disputed that if the rules framed are within the scope of the Act, then the levy has been properly made. But Mr. Samant&#8217;s contention is that looking to certain amendments which were introduced into the Local Boards Act of 1923 these rules are &#8216;ultra vires&#8217;. Now, two new definitions were added in Section 3 of the Bombay Local Boards Act. One was the definition of &#8220;district&#8221; and &#8220;district&#8221; was defined as the district referred to in Sub-section (1) of Section 3A or the local area declared as a district under Sub-section (2) of that section, as altered by the notification, if any, issued under Sub-section (3) of the same section, Turning to Section 3A, under sub-clause (1) a district is the same as a local area constituted as a district. Then Sub-clause (2) empowers the State Government in special circumstances to declare any local area whether in the same district or in any other district to be a district for the purposes of the Act, and Sub-clause (3) empowers the State Government by a notification in the Official Gazette to exclude from any district any local area comprised therein, or include in any district any local area in the vicinity thereof. No notification has been issued either under Sub-clause (2) or Sub-clause (3) of Section 3A, and it is not disputed that the Ratnagiri District is the same district for the purposes of the Land Revenue Code as for the purposes of the Bombay Local Boards Act, 1923. Then we have the definition of &#8220;octroi&#8221; which is defined as a tax by way of case on the entry of goods into a district for consumption, use or sale therein. Therefore, it is clear from this definition that it is only when goods enter into a district from another district that the octroi tax can be levied. No tax would be an octroi tax if it is levied on goods which come from one part of the district into another. Then the other relevant section is Section 4 which provides that the State Government may establish a district local board for an area constituted as a district, and in this case a district local board has been constituted for the Ratnagiri district, and turning to Sub-section (3), a district local board shall have authority for the purposes of this Act over the area for which it has been established, except such portion thereof as is for the time being within the limits of a municipal district or cantonment. This Sub-section therefore defines the jurisdiction of the district local board and it is true that the jurisdiction of the local board is not co-extensive with the district but it is limited to the whole of the district excepting those portions therein which are within the limits of a municipal district or cantonment. In this particular case it is again common ground that Sawantwadi has a Municipality and constitutes a municipal district.\n<\/p>\n<p> (3) Now,   the  contention  of  Mr.   Purshottam on behalf of the local board is that the jurisdiction of the district local board did not extend to the municipal limits of Sawantwadi, and as the goods came from Sawantwadi into an area over which the district local board had jurisdiction,  it   was   competent  for  the  district  local board  to  levy octroi  duty.    This  contention is consistent with the rules framed by the district local board to which I have already drawn attention.    If  it  was  competent  for  the   district local board to levy octroi duty on goods which are  brought   within   its    octroi   limits   and  if octroi  limits  were  to mean  the  whole  of the area  subject  to  the  jurisdiction  of  the  board under  Section  4  of  the Act,  then undoubtedly the district  local   board   was   within   its   rights   in levying octroi on goods  which came from Sawantwadi to Kunkeri, because the goods came from  outside  the  octroi  limits  of  the   district local board into those octroi limits.      But unfortunately these rules were first framed as far back  as   1929  and  these  rules  have  continued to remain the same notwithstanding the amendments introduced into the Act to which I have drawn   attention.    It   is   clear   that   the   rules framed  by the  district  local  board  cannot  go beyond   the  scope  of  the  Act   itself,  nor  can they be inconsistent  with the  Act,  and therefore we have got  to look at the Act  as it is amended  to  consider  whether  these  rules   are proper rules.   If octroi means, as it does mean under the amended Act, a tax on the entry of the goods into a district, then it is not open to the   district   local   board   to   levy   octroi   when goods come from one part of the district into another   although   the      part   from   which   the goods come are not within the octroi limits of the  district  local  board.    The  district  contemplated  in the  definition  of  &#8220;octroi&#8221;  under the Act  is   the   district   defined   in   the   Act   itself and that is either the  revenue  district  or the revenue district altered or modified by a notification  by  Government  under  Section   3A.    If  the limits of the district had not been altered, then the revenue district is the same as the district for the purposes of the Local Boards Act and for the purposes of considering the right of the district local board to levy octroi on goods entering into  the  district.    Mr.  Purshottam  asks me to read the definition in Section 3 with Section 4 and Mr.  Purshottam  says   that  the  district  in  the definition  of  &#8220;octroi&#8221;  can  only   mean  not  the whole of the revenue district but only that portion of the district over which under Section 4 the district local board has jurisdiction.    I am unable, to  accept  that  contention.   When  an expression is defined in the Act, that definition must apply wherever that expression occurs in the statute, unless the Act itself indicates to the contrary, and therefore I can only read the expression &#8220;district&#8221; in the definition of &#8220;octroi&#8221; as defined by the Act itself. The purpose of Section 4 is entirely different. It prescribes the limits of the jurisdiction of the district local board, whereas the definition of &#8220;octroi&#8221; defines what that particular tax is and it makes it clear that the tax can only be an octroi tax provided the goods entered into a district from another district. Mr. Purshottam says that this interpretation, may lead to evasion of the tax by people taking goods to Sawantwadi and then bringing it into the other parts of the district over which the district local board has jurisdiction. I am not really concerned with the possibility of evasion of tax. I am considering rules which are taxing rules and they must be strictly construed in favour of the subject. Therefore, in my opinion, the rules framed by the district local board defining &#8220;octroi&#8221; and &#8220;octroi limits&#8221; are &#8216;ultra vires&#8217; and it was not competent to the district local board of Ratnagiri to levy octroi on goods which entered Kunkeri from Sawantwadi.\n<\/p>\n<p> (4) The result is that the rule will be made<br \/>\nabsolute with costs, and there will be a decree<br \/>\nin favour of the applicant for Rs. 4-6-0.\n<\/p>\n<p>(5) Rule made absolute.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court Anant Sadashiv vs Ratnagiri Jilha (District) Local &#8230; on 18 June, 1952 Equivalent citations: AIR 1953 Bom 71, (1952) 54 BOMLR 841, ILR 1953 Bom 134 Bench: Chagla ORDER (1) This revision application raises a short but rather interesting question as to the competency of a district local board to levy octroi [&hellip;]<\/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":[11,8],"tags":[],"class_list":["post-43476","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Anant Sadashiv vs Ratnagiri Jilha (District) Local ... on 18 June, 1952 - Free Judgements of Supreme Court &amp; 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