Judgment:
S.A. Bobde, J.
1. The petitioners carry on business of micro-fertilizers in the name and style of Sona Chemicals at MIDC, Amravati. They have been regularly purchasing Borax from outside Amravati and importing it within the limits of the Amravati Municipal Corporation by road.
2. By this petition, the petitioners have challenged the action of the Amravati Municipal Corporation in levying octroi on Borax under Item 40(b) of the Maharashtra Municipalities (Octroi) Rules, 1968 (hereinafter referred to as 'the Rules') @ 4% of the value of the goods. Earlier, the Municipal Corporation was charging octroi on the basis that the goods in question, i.e. Borax was a 'chemical manure' under Item 85 of the Rules @ Re.1/- per tonne. Aggrieved by the action of the Municipal Corporation in classifying Borax as a 'chemical' and charging @ 4% ad valorem instead of classifying it as a 'chemical manure' and charging octroi @ Re.1/- per tonne, the petitioners have approached this Court.
3. In Shedule I, the two entries under which the respondents have levied octroi now and earlier read as follows:
Sr. No. 1
Description of goods 2
Ad valorem Maximum Minimumrate rate 3 4 Per Cent Per Cent
Per 10 kilograms unlessotherwise specified Maximum Minimum Rate Rate 5 6
40
(a) All kinds ofinedible fats, tallow, lards, etc. not used as food.
4.00
0.50
(b) Chemicals of all sorts,Sodium, sulphate, Sizing Salt, sulphate of iron, sulphate of copper, Sulphateof alumina, Silicate of soda, Caustic Soda and other salts not otherwisespecified, sulphur, Chlorate of potash, Strauntia, Zinc Chloride, MagnesiumChoiloride, Salt petre, Acids of all kinds, Salamonaic, Borax, Sizingflour.ise specified, sulphur, Chlorate of potash, Strauntia, Zinc Chloride,Magnesium Choiloride, Salt petre, Acids of all kinds, Salamonaic, Borax,Sizing flour.
4.00
0.50
85
Chemical manures
Rs.1 per tonne
75 paise per tonne
4. Shri B.N. Mohta, learned Counsel for the petitioners, submitted that Borax is imported by the petitioners as a chemical manure for distribution as such and, therefore, the Corporation was properly levying octroi on it as such at the rate of Re. 1/- per tonne. According to the learned Counsel, the action of the Corporation in classifying Borax as anything other than a chemical manure is not warranted and the petitioners are, therefore, entitled to a declaration that octroi can be levied on Borax only as a chemical manure under Entry 85 supra.
5. Shri M.K. Pathan, learned Counsel for the respondent No. 3, however, submitted that properly construed, chemicals of all sorts, whatever purpose they are utilised for are liable to be classified under Entry No. 40(b) and, therefore, Borax cannot be classified as a chemical manure. He further submitted that the Corporation realised its mistake in the year 1992 and there is no estoppel against law on which the petitioners can place any reliance.
6. Shri M.K. Pathan, learned Counsel for the respondent No. 3, further submitted that it is apparent from the Marathi version of the classification entries that Entry No. 85 includes only such chemical fertilizers which are not included in any of the above entries and not specifically exempted. The translation of the Marathi version reads as follows:
85. Chemical Fertilizers, if not included in any of the above entries and they are specifically exempted in Schedule II.
7. Having considered the matter, we are of the view that there is no warrant for classification of Borax as a chemical manure. Properly construed, the Schedule I in which these two entries occur suggest that Borax can be properly classified only under Item 40. Apart from the fact that it is included in the term 'chemicals of all sorts' being a chemical, it may be noted that Borax is specified as one of the chemicals under Item 40(b) chargeable @ 4% ad valorem. The term 'chemical manure' occurring in Entry No. 85 chargeable @ Re.1/- per tonne will, therefore, have to be interpreted as including those chemical manures including chemicals which are not already included in the earlier entry. In this case, the matter is placed beyond any doubt by the mention of Borax as a chemical in Entry No. 40(b) and by the further fact of Entry 85 which refers only to chemical fertilizers, if any included in any of the above entries and specifically exempted in Schedule II, as is apparent from the Marathi version. In this view of the matter, we find that it is wellsettled that a specific entry would override a general entry and a resort may be had to residuary heading only when a liberal construction of the specific heading cannot cover the goods in question, vide State of Maharashtra v. Bradma of India Ltd. Reported in : AIR2005SC956 .
8. In this view of the matter, we see no merit in the petition, which is hereby dismissed. Rule stands discharged with no order as to costs.