Bata Shoe Co vs. City of Jabalpur Corporation on 11 March, 1977

    Plaintiffs are a limited company having their registered office at Calcutta. At the relevant time they had their factories at Batanagar in West Bengal, Batapur in West Punjab, Palsia-Digha in Bihar and Faridabad near Delhi. The sale's organization of the plaintiffs is situated at Calcutta, and that organization sells manufactured articles through the Company's retail shops situated in different parts of India and Pakistan. Three such retail shops were situated at Jabalpur.

Symbolic photograph

    The plaintiffs had paid to the Municipal Committee a sum of Rs. 16,528 odd as control duty for imported by the retail shop at Jabalpur within the limits of the then Jabalpur Municipal Committee. This duty was assessed by the Municipal Committee on an amount which was 40% less than the retail price of the goods which were brought within the municipal limits. The Municipal Committee further decided to levy double the duty by way of penalty for the aforesaid period on the ground that the plaintiffs bad intentionally evaded the payment of the duty payable on the goods. Plaintiffs preferred an appeal against the decision of the Municipal Committee but the decision modified of the Municipal Committee by permitting them to charge the octroi duty on an amount which was less by 12-1\2 % than the retail price of the goods. The revision application preferred by the plaintiffs to the Board of Revenue was rejected on the ground that it was not maintainable. Plaintiffs paid amount to the Municipal Committee under the protest but Defendants demanded a further sum alleging that they had over- looked asking for it through mistake. Plaintiffs paid that amount too and filed a suit against the Municipal Committee for recovery of the total amount with interest at 6% per annum on the ground that the defendants were not entitled to recover the amount by way of octroi duty and penalty.

     The Court held that is impermissible in view of the provision contained in section. 84 (3)of the Act. In the result, the plaintiffs fails and is dismissed and the defendants succeeds and is allowed with the result that the plaintiffs' suit will stand dismissed.