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Issues:
1. Controversy over the rate of octroi duty levied on Rectified Spirit imported by a company engaged in the manufacture of IMFL/potable liquor. 2. Interpretation of relevant entries in the Schedule "O" of the Aurangabad City Municipal Corporation Octroi Rules. 3. Determination of the appropriate octroi duty rate for Rectified Spirit imported by the company. Analysis: 1. The appellant, a company manufacturing IMFL, imported raw materials including Rectified Spirit into the octroi limits of Aurangabad Municipal Corporation. The dispute arose when the authorities suddenly increased the octroi duty rate from 1.5% to 5%, claiming it fell under a different entry in the Schedule "O." The appellant contended that Rectified Spirit was not fit for human consumption and should not be charged at the higher rate. The High Court dismissed the appellant's writ petition, leading to this appeal before the Supreme Court. 2. The Schedule "O" contained various entries specifying goods liable for octroi duty and their respective rates. The appellant argued that Rectified Spirit should be classified under Entry 37 of Class III, while the respondent claimed it fell under Entry 7 of Class I. The Court analyzed the definitions and context of these entries to determine the correct classification for Rectified Spirit. 3. The Court examined the nature of Rectified Spirit as an input for manufacturing potable liquor, emphasizing that it was not directly consumable and required further processing before becoming fit for human consumption. Relying on previous judgments and the specific language of the Schedule, the Court concluded that Rectified Spirit should be categorized under the residuary Entry 86 of Class IX, attracting an octroi duty rate of 2% instead of the contested 5%. The appeal was allowed, and the appellant was directed to pay the revised octroi duty rate, with no costs awarded.
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