9911796707
TMI Blog1979 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is running a salt manufacturing works at Jaffrabad called "Nawabsidi Mohmad Khan Salt Works". The company had constructed salt works, grinding mills, trolly- tracks and a jetty at e port site. The major portion of the salt works is situate out of the Municipal limits. The salt is manufactured outside the municipal limits. The grinding mills and the part of the trolly-track leading to jetty come within the municipal limits of the respondent Jaffrabad Municipality. The Municipality by a notice dated 3-1-1955 demanded from the appellant ₹ 7289-6-0 as arrears of octroi. The appellant paid under protest and filed the suit out of which this appeal arises before the Civil Judge Gohilwad, District Bhavnagar, against the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he prescribed rules and formalities. The other claims in the suits were dismissed. Against the judgment of the High Court the plaintiff company has preferred these two appeals. The only question that falls for consideration in these civil appeals is whether the salt manufactured by the appellant outside the octroi limits of the respondent and brought by the appellant within those limits for the purpose of being crushed into powder in the appellant's factory situate within those limits and then exported is liable to octroi. The facts as found by the High Court and which cannot be questioned are that the salt works consists of (i) salt pans; (ii) stacking ground for the salt collected from the pans; (iii) trolly track for carrying salt f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and applied to Saurashtra State became applicable to Jaffrabad. The Jaffrabad Municipality, the predecessor of the respondent, was constituted under the Bombay District Municipal Act. 1901. The State of Saurashtra, within the territorial limits of which the said Municipality was situate, published an ordinance on 31-8-1949 being ordinance,- No. 47 of 1949 called the Saurashtra Terminal Tax and octroi ordinance, 1949. The ordinance extended to the whole of The State of Saurashtra and came into force from 31-8-1949. Section 2 clause (2) of the ordinance defines 'octroi' as including a terminal tax. Section 3 empowers the Government to impose terminal tax and octroi duty. It provided that octroi may be imposed on "animals or go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sending the crushed salt to the jetty within the octroi limits will be used therein as required under section 3. In this appeal it is necessary for us to consider the scope of the I words "consumption" and "use". The precise meaning to be given to the words "consumption" and "use will depend upon the context in 17-475 SCI/79 which they are used. These words are of wide import. In the Constitution of India, Entry 52 in List II in Seventh Schedule a right to impose tax "on entry of goods into the local area for consumption, use or sale" is conferred. In Burmah Shell oil Storage & Distributing Co. India Ltd. v. The Belgaum Borough Municipality this Court after tracing the history of octroi and te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of changing it into a commercially different article, viz., biddipatti the delivery was for the purpose of consumption. This Court followed the decision in State of Travancore Cochin and ors. v Sanmugha Vilas Cashew Nut Factory and Ors. wherein it was held that the raw cashew nuts were put through a process and new articles of commerce, namely cashew nut oil and edible cashew nut kernels were obtained. The Court expressed the view that the raw cashew nut is consumed in the process. On the facts the High Court found alter referring to the different processes of baking or roasting. Shelling pressing, pealing etc. that although most of the process is done by hand, part of it is also done mechanically by drums. Oil is extracted out of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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