MUNICIPAL BOARD, BAREILLY versus BHARAT OIL COMPANY AND ORS.

MUNICIPAL BOARD, BAREILLY versus BHARAT OIL COMPANY AND ORS.

The State Government, by rule-making power under Section 296 read with Section 300(2) of the U.P. Municipalities Act, can except any municipality from the operation of the general rules; the 1963 rules framed for Bareilly Municipality expressly supersede the 1925 general octroi rules, and Rule 131 of the 1925 rules ceased to operate for Bareilly. Therefore, the Municipal Board, Bareilly, had authority to levy octroi on mineral oils.

Parties
Appellant: Municipal Board, Bareilly; Respondents: Bharat Oil Company and others
Jurisdiction
India
Judgment Date
04 December 1989
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From Allahabad High Court
Outcome
Appeal allowed
Legal Topics
Octroi, Rule Making Power, Supersession of Rules, Levy of Municipal Taxes
Taxation Municipal Law Octroi Rule Making Power Supersession of Rules Levy of Municipal Taxes

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Parties

Municipal Board, Bareilly

Appellant

Bharat Oil Company and others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From Allahabad High Court

Legal Issues

  1. 1 Whether the Municipal Board, Bareilly had authority to levy octroi on mineral oils after the 1963 rules superseded the 1925 general octroi rules.
  2. 2 Whether rule 131 of the 1925 Municipal Account Code continued to restrict the Board after the adoption of 1963 rules.

Ratio Decidendi

The State Government, by rule-making power under Section 296 read with Section 300(2) of the U.P. Municipalities Act, can except any municipality from the operation of the general rules; the 1963 rules framed for Bareilly Municipality expressly supersede the 1925 general octroi rules, and Rule 131 of the 1925 rules ceased to operate for Bareilly. Therefore, the Municipal Board, Bareilly, had authority to levy octroi on mineral oils.

Court Disposition

Appeal allowed

Orders

  • Judgment of Allahabad High Court quashing the notification dated August 27, 1969 is set aside.
  • No order as to costs.