IOCL gets interim relief from coercive action by NMC
Nagpur   31-Mar-2011

The Nagpur Bench of the Bombay High Court issued notice to respondents - City Municipal Commissioner, Nagpur and the State urban Development Secretary, Mumbai – to show cause in two weeks as to why a petition filed by IndianOil challenging Octroi rules be not entertained.

IndianOil has challenged the validity of Rules 14(a), (d), (f) and (h) and 44 of the Octroi Rules and a penal bill on octroi duty to the tune of Rs 2,64,26,021/-.

Granting interim relief against action by the Nagpur Municipal Corporation (NMC) Justice Dilip Sinha and Justice Ashok Bhangale have directed the petitioner company to deposit deficit octroi duty to the tune of Rs 8,87,162/- for a period of around 16 months.

The petitioner has claimed that it pays octroi every month to the NMC amounting to Rs 1.60 to 1.65 crore through its Khapri Depot. It has been contended that penalty cannot be levied without passing an order and only upon being satisfied that the evasion of octroi duty is deliberate and no such order has been passed in this instance. The rules, under which penalty has been imposed are contrary to section 152 of the City of Nagpur Corporation Act, 1948 it was argued. It was also argued that as advance octroi duty has been paid as per Rule 39A, therefore, penalty could not have been imposed.

Advocates Sunil Manohar and Rohit Joshi appeared for the petitioner. AGP Nitin Rode represented the State.