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Issues:
Validity of rules and bye-laws made by the respondent-Municipality under the Act for imposing and collecting octroi duty. Applicability of Government rules for levying octroi duty after deletion of respondent-Municipality from Schedule I of Ordinance 47 of 1949. Dispute regarding settlement of octroi duty account under Section 99 of the Act and the subsequent recovery process under Chapter VIII. Analysis: The judgment revolves around the legality of rules and bye-laws enacted by the respondent-Municipality for the imposition and collection of octroi duty. The appellant-firm contested the validity of these rules, arguing non-compliance with procedural requirements. The Trial Court found the rules to be illegal due to non-compliance with statutory provisions, leading to the declaration of the bills and demand notice as illegal. However, the Trial Court clarified that the Government rules would remain in force until the Municipality's rules were legally enforced. The District Court upheld this decision, emphasizing the validity of the Municipality's rules. The High Court summarily dismissed the appeal, prompting the appellant-firm to seek special leave from the Supreme Court. The Supreme Court analyzed the transitional nature of Ordinance 47 of 1949, which allowed the State Government to frame rules until municipalities could establish their own regulations. The Court highlighted that the Government rules would cease to apply once the Municipality's rules were legally enforced. The notification deleting the Municipality from Schedule I intended a smooth transition from Government to Municipal rules. The Court emphasized that if the Municipality's rules were invalid, the Government rules would continue to operate. Therefore, the Municipality could levy octroi duty under the Government rules until its own rules were legally enforced. Regarding the settlement of octroi duty accounts under Section 99 of the Act, the Court clarified that the Municipality's failure to settle the account was due to the appellant-firm's non-provision of necessary details. As per the Act, the Municipality could recover the due amount under Chapter VIII, including through a distress warrant, if the account was not settled. The Court dismissed the appellant-firm's argument that the Municipality lost entitlement to recover due to the unsettled account, emphasizing the appellant's obligation to provide necessary details for settlement. Ultimately, the Supreme Court rejected both submissions made by the appellant-firm, upholding the legality of the Municipality's rules for levying octroi duty and the recovery process under Chapter VIII. The appeal was dismissed with costs, affirming the District Court's findings on the validity of the rules and the recovery process under the Act.
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