VALLABHDAS AND OTHERS versus MUNICIPAL COMMITTEE, AKOLA.

Citation: [1961] 3 S.C.R. 618 · Decided: 27-01-1961 · Supreme Court of India · Bench: J.L. KAPUR · Disposal: Dismissed

Judgment (excerpt)

618 
SUPREME COURT REPORTS 
[1961] 
'96' 
Judge nor the High Court has given a finding on that 
Pioneer Motors point, it is necessary to remit the case to the High 
(PYivate) Ltd. 
Oourt with the direction that the appeal be reheard 
v. 
and that particular question be decided on the 
. · Municipal Council, materials on the record. Nothing that has been said 
Nagerco•l 
in this judgment must be taken to be an expression of 
Kapur J. 
opinion on the merits of this plea taken by the appel-
lant Trust. 
January 27. 
Appeal No. 502 of 1958, is therefore, allowed and 
the case remitted to the High Court for decision. The 
costs in this Court and in the High Court will abide 
the decision of the appeal in the High Court. 
Appeals nos. 499 to 501 dismissed. 
Appeal no. 502 allowed. Case remitted. 
V ALLABHDAS AND OTHE.RS 
v. 
MUNICIPAL COMMITTEE, AKO LA. 
(J. L. KAPUR, M. HIDAYATULLAH and J. c. SHAH, JJ.) 
Octroi Tax-Legality of imposition-:" System of Assessment", 
meaning of-C. P. & Berar Municipal Act, r922 (C. P. & Berar II 
of I922), S. 67(2). 
The Municipal Committee, Akola_, passed a resolution to 
impose an octroi ta:: and forwarded it along with the draft rules 
of-assessment and collection to the State Government. The State 
Government published a notification in the Gazette which con-
tained the articles to be taxed, the rate or rates at whicq they 
were to be taxed and a brief statement of objects and reasons for 
the imposition of the tax. This was followed by draft rules as to 
how taxation was to be done. Thereafter the Municipal Com-
mittee affixed on its notice board and also published in the local 
newspapers the said proposed _rules but the draft rules in regard 
to the "system of assessment" were not published along with 
other particulars. It was alleged by the appellants that the 
Municipality by not publishing the draft rules of tile "system of 
assessment", failed to comply in full with the mandatory require-
ments of s. 67(2) of the Act rendering the imposition of tax 
illegal. 
Held, that the words" system of assessment" did not neces-
sarily mean the whole procedure of taxation, i.e. imposition, 
collection and procedure in regard to collection and refund. The 
notice and not the draft rules relating to assessment and collec-
tion were required under the Rules to be affixed on the notice 
3 S.C.R. 
SUPREME COURT REPORTS 
619 
board of the Municipality and at other conspicuous places of the 
Vallabhdas 
town. In the instant case the publication of the Rules relating 
to the rates at which the tax had been imposed was sufficient 
compliance with the provisions of Section 67(2) of the C. P. & 
v. 
Berar Municipal Act, 1922, and the rules made thereunder. 
Muni<ipal 
CIVIL APPELLATE JURISDICTION: 
Civil Appeal No. 
234/60. 
Appeal from the judgment and order dated Novem-
ber 18, 1958, of the Bombay High Court at Nagpur in 
Special Civil Application No. 201 of 1958. 
N. O. Chatterjee, M. N. Phadke, 
S. A. Sonhi 
and 
Ganpat Rai, for the appellants. 
A. V. Viswanatha Sastri, B. R. Mandekar and A. G. 
Ratnaparkhi; for ri;ispondent No. 1. 
· 
G. O. Mathur and R. H. Dhebar, for respondent 
No. 2. 
·~ 
1961. January 27. The Judgment ofUie Court was 
delivere~ by 
KAPUR, J.-This is an appeal against the jugdment 
and order of the High Court of Judicature of Bombay 
at Nagpur dismissing a petition under Arts. 226 & 
227 of the Constitution challenging the legality of the 
imposition of the octroi tax under s. 66(l)(e) of the 
C. P. & Berar Municipal Act (Act lI of 1922) herein-
after termed the Act. 
The appellants who were the petitioners in the 
High Court are some of the rate-payers of the town of 
Akola in the erstwhile State of Bombay and respond-
ent No. 1 is the Municipal Committee, Akoia. On 
November 11, 1957, respondent No. 1 passed a resolu-
tion to impose an oct.roi tax on animals and goods 
brought within the limits of the Akola Municipality. 
This resolution and the draft Rules of Assessment and 
Collection were later on forwarded by the Akola 
Municipality to the State Government for publication. 
A notification dated January 3, 1958, was published 
in the Bombay Government Gazette on January 16, 
1958. T.his Gazette Notification contained the draft 
rules, the schedule of goods liable to octroi duty and 
the rates to be charged. This was in accordance with 
the requirements of s. 67(2) of the Act. Respondent 
Committee, Akola 
Kapur j. 
620 
SUPREME COURT REPORTS 
[1961] 
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No. 1, the Muni

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