THE MUNICIPAL COMMITTEE, RAIPUR versus PHOOLCHAND AND OTHERS

Citation: [1962] SUPP. 1 S.C.R. 151 · Decided: 20-10-1961 · Supreme Court of India · Bench: BHUVNESHWAR PRASAD SINHA · Disposal: Dismissed

Judgment (excerpt)

(1) S.C.R. SUPREME COURT REPORTS 
151 
THE MUNICIPAL COMMITTEE, RAIPUR 
v. 
PHOOLCHAND AND OTHERS 
(B. P. SINHA, c. J., J. L. KAPUR, M. HIDAYATULLAH, 
J. c. SHAH and J. R. MUDHOLKAR, JJ.) 
Municipality-Bye-law-In!erpretation of-Levy of octroi 
on sarso oil seeds-Rate-Rules of the Raipur Municipality, 
1951, Sobedule of goods, items 4, 44. 
The respondents carried on business of extraction of oil 
from oil seeds. The appellant Municipality charged octroi 
duty at Rs. 4-l l ·O percent ad valorem under item 44 of the 
schedule of goods attached to the Rules framed by the Muni-
cipality. The respondents' case was that they were liable 
to pay octroi under item 4 of the said Rules at the rate of 2 as. 
per maund. The schedule consisted of eight classes with 67 
items of goods, the serial number running consecutively. Class 
I was headed "Articles of food or drink or use for men or 
animals". Item 4, which was in that class, read "Oil seeds 
every description not 
specifically mentioned else where". 
Class V was headed "Drugs, spices and gums, toilet requisites 
and perfumes'' and item 44 which was in that class read "betel-
nuts, gums, spices .... sarso ...... etc. and known as kirana" 
(groceries). The single Judge who heard the matter in the first 
instance held in favour of the appellant but the court of appeal 
held in favour of the respondent. 
Held, that the view taken by the Court of appeal must 
be upheld. 
The words "not specifically mentioned elsewhere" in item 
4 of the Schedule must mean mention as an oil-seed. 
The words 
'"known as Kirana" in item 44 clearly 
indicated that sarso fell within its ambit only as a spice or as 
K irana and not as an oil-seed. Although there could be no 
doubt that sarso as an oil-seed was the same thing as Kirsna, 
but the intention behind the bye·law to charge oil seeds at a 
lesser rate was clear and must be given effect to. 
CIVIL APPELLATE JURISDICTION: Civil Appeals 
Nos. 356 and 357 of 1961. 
Appeals by special leave and certificate from 
the judgments and orders dated October 16, 1959, 
and February 16, 1960, of the M.1dhya Pradesh 
High Court in L. P. A. No. 93 of 1957 and Miso. 
Petition No. 254 of 1959 respectively. 
Oct•ber 20. 
1961 
1b1 It .. i<i/>al 
Conlmilltt, Rai/>ur 
v. 
Phoow-J 
HiJli1attd/oh J, 
152 SUPREME COURT REPORTS [1962) SUPP. 
~· 
S. T. Desai and N. H. liingorani, for the 
appellant. 
M. /(. Nambiar, S. N. Andley, Ramuhwar Nath 
B ncl P. L. Vohra, for respondent No. I. 
1960. October 20. The Judgment of the Court 
was delivorcd by 
HWAYATULLAH, J.-These two appeals by 
special leave h>1vc been filed by the .Municipal 
Committee, l{aipur, against two different respon-
dents, who carry on business of extraction of oil 
from oil ~eeds. 'l'he case involves an interpretation 
of the Bye-laws of the .Municipal Committee and 
the determination of octroi duty which wa11 payable 
by the respondents in the relevant years of asseBS-
ment on sarso oil seed.R brought by them within the 
a.re.a of the appellant Committee for purposes of 
their business. The Municipal Committee demand-
ed an ad valorem octroi duty Rs. 4-11-0 per cent 
from the respondents, claiming to levy it under 
item 44 of the Schedule of goods liable to octroi 
duty in the Raipur Municipality, appended to the 
Rules framed on June 4, 1951. The respondents, 
on the other hand, contended that a duty of 2 
annae per maund was leviable under item 4 of the 
aame Schedule, which covered the case of oil seeds. 
The respondents made representations describ-
ed as appeals, but were unsuccessful. Their demand 
for refund of octroi duty paid by them waa refused, 
and they, theref01e, filed petitions under Art. 226 
of the Constitution in the High Court of Nu.gpur 
(later, of Madhya Pradesh) against the appellant, 
alleging, inter alia, that this imposition of octroi 
duty ad valorem at Rs. 4-11-0 per cent on Barso oil 
seeds as against other oil seeds was ultra viru the 
Municipal Committee under .A1:t. 
14 of the 
Constitution. They also averred that ootroi duty 
was properly leviable under item 4 and not under 
item 44. In the High Court, the petition out of 
which Civil Appeal No. 356 of 1961 arises, was 
heard by a learned single JudgP, who held that 
.:
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( 1) S.C.R. SUPREME COURT REPORTS 
153 
sarso oil seeds were chargeable to duty under item 
44 and not under item 4. From the order of the 
learned single Judge, it does not appear that the 
constitutional question was urged before him. 

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