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London Wine Vs. State and ors. - Court Judgment

LegalCrystal Citation
SubjectOther Taxes
CourtRajasthan High Court
Decided On
Case NumberS.B. Civil Writ Petition No. 575 of 1977
Judge
Reported in1985WLN(UC)227
AppellantLondon Wine
RespondentState and ors.
Cases ReferredMedowell & Co. v. Commercial Taxes Officer
Excerpt:
rajasthan municipalities act, 1959 - octroi duty--levy of--octroi duty is payable on price of goods--held, it does not include excise duty;rule made absolute. - .....it cannot be said that the octroi duty is liable in addition of the excise duty to the sale price of the company. the municipality held that the octroi duty will be liable on the prices of the goods manufactured plus excise duty added to it for the purpose of the octroi.2. in the supreme court decision as here in before stated the supreme court inter alia held that the phrase 'any sum charged by the dealer' according to the definition of turnover in section 2(s) has to be understood in its ordinary popular sense. excise duty or contravening duty paid directly to the excise authority by the purchaser cannot be included in the bills of sale for consideration of sale. the octroi duty is paid by the purchaser before the removal of the goods from the bonded ware house and the.....
Judgment:

P.K. Banerjee, C.J.

1. In my opinion in view of the Supreme Court Judgment in Medowell & Co. v. Commercial Taxes Officer : [1977]1SCR914 it cannot be said that the Octroi Duty is liable in addition of the excise duty to the sale price of the company. The Municipality held that the Octroi Duty Will be liable on the prices of the goods manufactured plus excise duty added to it for the purpose of the Octroi.

2. In the Supreme Court decision as here in before stated the Supreme Court inter alia held that the Phrase 'any sum charged by the dealer' according to the definition of turnover in Section 2(s) has to be understood in its ordinary popular sense. Excise duty or contravening duty paid directly to the excise Authority by the purchaser cannot be included in the bills of sale for consideration of sale. The Octroi duty is paid by the purchaser before the removal of the goods from the bonded ware house and the excise duty to be paid over the price of the goods cannot be included in the price of the goods. Therefore Octroi duty will be only on the price of the goods and cannot include the excise duty to be paid on such price.

3. The rule is made absolute to the extent indicated above.


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