LexM/S GARWARE NYLONS LTD. versus PIMPRI CHINCHWAD MAHANAGAR PALIKA AND ORS.
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MIS GARWARE NYLONS LTD. A v. "\ PIMPRI CHINCHWAD MAHANAGAR PALIKA AND ORS. MARCH 28, 1995 (R.M. SAHAI AND S.B. MAJMUDAR, JJ.) B Maharashtra Municipalities (Octroi).Rules, 1968: ~ Rule 17-Scope and intetpretation o~ctroi-Goods imported-Cus- tom duty paid on-Held liable to be included while valuing the goods-Men- c tion of charges in rnle is illustrative and not exhaustive. The appellant-company-a manufacturer of nylon and polyster yarn - imported goods which were liable to octrol. The Respondent-Corporation while valuing the goods for charging octroi under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules 1968 included the custom duty D paid by the company on the imported goods. The appellant-company preferred an appeal which was dismissed. The High Court also held that ---.; even diough the custom duty was not mentioned In Rule 17(a) yet It was ' liable to be Included while determining the value under Rule 17. In appeal to this Court it was contended for the appellant- company that since the words 'custom duty' do not find place in Rule 17, they could not be lnclnded E for determining valuation under the Rule. Dismissing the appeal, this Court HELD : Rule 17 of the Maharashtra Municipalities (Octroi) Rules, F - 1968 provides for determination of value of goods brought inside the Corporation or Municipal Board for consumption, use or sale. The use of various words iu the rule widens its scope. It provides for Inclusion of cost price, charges such as freight, carrier, custom duties and then all other incidental charges, dues etc. The mention ofvarious charges and duties Is G more illustrative than exhaustive. It only indicates that It is not only the expenses which are usually incurred in normal course of commercial activity, but any incidental expenditure shall also constitute the value of ~ the goods. The rule has to be understood in broad sense. No good can be imported from outside without payment of custom duty unless It Is exempt. There appears to be no reason to exclude it while determinini: the value of H 23 24 SUPREME COURT REPORTS [1995) 3 S.C.R. A the goods. In any case, if duty counter-vailing could be considered to be incidental charges for importation, there is no valid reason to exclude custom duty from it. (25-H, 26-A-B] . ,,._ Mis Shroff and Co. v. Municipal Corporation of Greater Bombay, B [1989] Supp. 1 SCC 347, referred to. Mis Goodyear India Ltd. v.State of Haryana andAnr., JT (1989) 4 SC 229 and Mis McDowell and Co. Ltd. v. Commercial Tax Officer, [1977] 1 sec 44, cited c 1988. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1662 of From the Judgment and Order dated 1.3.88 of the Bombay High Court in W.P. No. 420 of 1987. D M.L. Verma, Palhv Sisodia, Ms. Punita Singh, Ms. Sonu Bhatnagar aod Sanjay !Gshao Kaul with him for the Appellaot. V.E. Joshi for the Respondents. E The following Order of the Court was delivered : The question that arises for consideration in this appeal is whether Jhe customs duty paid by the appellaot could be included for determining valuation for purposes of charging octroi under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1%8 made under sub-section F (2) of Section 321 read with proviso to sub-section (1) of Section 105 of the Maharashtra Municipalities Act, 1965. - The appellaot is a public limited compaoy. It maoufactured nylon and polyster yarn. Between September 1983 aod August 1984 it imported G goods liable to octroi. The corporation authorities claimed that the appel- laot was liable to include the customs duty paid by it in the valuation of the goods as it was a component of the value of the said goods for the purpose of Rule 17(a). The appeal filed by the appellaot before the Civil Judge failed. The order was challenged by way of writ petition under .. Article 226 of the Constitution. The High Court negatived the claim. Rule H 17(a) is extracted below: " GAR WARE v. MAHANAGAR P ALIKA 25 "R. 17.-Provisions to determine value where octroi is Jeviable A ad-valorem ·: (a) If the original invoice is produced by the importer and accepted by the Octroi Officer the value of the goods means the value made up of the cost price of the goods as ascertained from that invoice plus freight ·charges, car- B rier charges, shipping dues, insurance, excise duties, sales tax, vend fee and all other incidental charges incurred by the importer till the arrival of the goo
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