NAGAR MAHAPALIKA, MEERUT versus M/S. PREM NATH MONGA BOTTLERS PVT. LTD. AND ANR.

Citation: [1996] 3 S.C.R. 515 · Decided: 18-03-1996 · Supreme Court of India · Bench: B.P. JEEVAN REDDY · Disposal: Dismissed

Judgment (excerpt)

NAGAR MAHAPALIKA, MEERUT 
A 
v. 
M/S. PREM NATH MONGA BOTTLERS PVT. LTD. AND ANR. 
MARCH 18, 1996 
(B.P. JEEVAN REDDY ANDS. SAGHIR AHMED, JJ.] 
B 
Uttar Pradesh Municipalities Act, 1916. 
S.128-Entry Ta.x'-Municipal Corporation of Meeruf-Notificatio11 
dated 4.1.1975-Entries 13,40,138-Enlly Tax 011 empty bottles of "Double C 
Seven'L-Hefd, empty bottles brought into the municipal area for pwpose of 
being refilled with the drink are exempted from en/ly tax. 
The respondent-Company, situated within the municipal limit of 
Meerut, carried on the business of bottling a drink known as 'Double 
Seven'. The drink was sent out of the Meerut Local area in bottles to D 
various dealers for sale, with the condition that after the drink was 
consumed the bottles would be returned to the company; and accordingly, 
the bottles were returned. The Municipal Corporation of Meerut proposed 
to levy entry tax on the entry of the empty bottles on the ground that the 
bottles were being dropped into the municipal area for the purpose of use, E 
i.e. for being tilled with the drink "double seven" and the empty bottles 
being" articles made of glass" within the meaning of Entry 138 of Notifica-
tion dated 4.1.1975, were subject of entry tax. The company resisted the 
levy inter alia on the ground that the empty bottles were covered by Entry 
13 of the exemption clause contained in the Notification. TI1e Corporation 
rejected the claim; but, the appellate authority in the appeal filed by lite F 
Company, as also the High Court in the writ petition filed by the C<trpora-
tion, taking note ol" the item "mineral water bottles", mentioned in the list 
of exemptions drawn up at Item 15 in the year 1956, an entry correspond-
ing to Entry 13 ol" the Notification dated 4.1.1975, accepted the case of the 
company that 'mineral water bottles' in Entry 13 of the Exempted Articles G 
would include empty bottles of "aerated water (and) could drinks of all 
kinds" mentioned in Entry 40 of the Taxable Articles and held that the 
empty bottles of Double Seven being bottled by mineral water were ex-
empted from octroi. Aggrieved, the Corporation filed the present appeal. 
Dismissing the appeal, this Court 
515 
H 
A 
B 
c 
516 
SUPREME COURT REPORTS 
[1996] 3 S.C.R. 
HELD : In view of the fact that the decision of the High Court was 
rendered in 1983, and the statement made before this Court that the point 
would not he at issue after 1987, it would not be proper and advisable, at 
this distance of time, to interfere with the opinion of the appellate 
authority and the High Court. It is presumed that they were aware of the 
factual situation obtaining in the State both in 1956 and in 1975. They have 
pointed out that the notification of 1975 was preceded by a notification of 
1956 and that in 1956 mineral water as is known today was not in Com-
mercial circle and, therefore, when the notification used the expression 
'mineral water', it meant are aerated water of the cold drinks. (519-C-D] 
CIVIL APPELLATE JURISDICTION; Civil Appeal No. 4151 of 
1983. 
From the Judgment and Order dated 13.1.83 of the Allahabad High 
Court in C.M.W.P. No. 925 of 1982. 
D 
V.J. Francis for the Appellant. 
~ 
' 
R.K. Jain, P.K. Rao and Mrs. Meera Aggarwal for the Respondent. 
•· 
The Judgment of the Court was delivered : 
E 
B.P. JEEVAN REDDY, J. This appeal is preferred by the Nagar 
Mahapalika, Meerut against the judgment of a learned Single Judge of the 
Allahabad High Court dismissing the writ petition filed by it. The matter 
arises under the Uttar Pradesh Municipalities Act, 1960 (the Act) and 
pertains lo levy of octroi. 
F 
The respondent is a company which runs a bottling plant in Meerul. 
Inter alia, it bottles a drink known as "Double Seven" under a franchise 
agreement with M/s. Modern Bakeries Limited, New Delhi, a Government 
of India Undertaking. The bottles are sent out of the Meerut local area to 
various dealers for sale. According to the respondent, the sale is subject to 
the condition that after the drink is consumed, the bottle is to be returned 
G to it. Accordingly, bottles were being returned to it from time to time. The 
appellant proposed to levy octroi on the entry of such bottles on the ground 
that the said bottles were being brought into the Meerut local area for the 
purpose of "use", i.e., for being filled with the drink "Double Seven". 
According to the appellant-corporation, the empty bottles being "articles 
H made of glass" within the mean

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