SLP CIVIL No 14968 of 1987
From the Judgment and Order dated 2111987 of the High Court of Allahabad in Civil Misc
Petition No492 of 1987
SN Kacker and Pramod Swarup for the Petitioner
Soli J Sorabjee and RB Mehrotra for the Respondents
The Judgment of the Court was delivered by SABYASACHI MUKHARJI J
This petition under Article 136 of the Constitution for leave to appeal is against the decision of the High Court of Allahabad dated 2nd of November 1987
The question involved here is regarding the levy and realisation of octroi duty by the Nagar Mahapalika Bareilly in Uttar Pradesh
Kasturi Lal Satantra Kumar and his partner respondents herein by a bid in the auction held for retail vend of country liquor for excise year 1987 88 ending on March 31 1988 obtained the necessary licence under the UP Excise Act for a group of shops known as Faridpur Group in the district of Bareilly
The auction was held in the month of March 1987
One of the conditions of the auction which also formed part of the licence was that the licensee would obtain supply of country liquor for retail vend from the bonded warehouse in respect of Bareilly district situated within the limits of Nagar Mahapalika Bareilly
Indubitably the said Kasturi petitioner in the original writ petition brought into the territory country spirit the question was at what rate the municipality was to impose octroi duty on the rectified spirit which was brought
It appears that there was a notification dated 30th of April 1986 published in the UP Gazette in exercise of powers under section 1722b of the UP Nagar Mahapalika Adhiniyam 1959
In the Schedule forming part of that notification are mentioned the articles on which the octroi duty is payable and the rates thereof
The articles have been grouped together in different classes from Class I to Class X Class III which bears the heading Articles of lighting Fuel Washing and Lubricants contains the following entry as item No 7 7
Methelated denatured and rectified spirit  Rs005 per litre 868 Class VI with the heading Tobacco and other intoxicating goods contains the following entry at item No 6 6
Foreign imported liquor and all kinds of wines made in India
 Re1 per litre It is asserted on behalf of the respondents that the point of entry within the Nagar Mahapalika limits the plain spirit is nothing but rectified spirit and that octroi duty could not be charged upon it in excess of Rs005 per litre under Item No 7 of Class III of the aforesaid Gazette Notification
The Municipality contends otherwise that it is foreign imported liquor of all kinds of wines made in India
The base for this contention is that for foreign liquor or wine rectified spirit is used
Reliance was placed on a decision of this Court in the State of UP and others vs Synthetics and Chemical Ltd etc
 AIR 1980 SC 614 where this Court observed that the term liquor  in the various Abkari Acts in the provinces of India would not only cover those alcoholic liquids which are generally used for beverage purposes and produce intoxication but also all liquids containing alcohol
It is therefore submitted that the payment of octroi duty could not be avoided by the respondents saying that the plain country spirit was not liquor in the sense that it was not fit for human consumption at the stage when it was brought within the limits of the Nagar Mahapalika
The normal meaning of the expression foreign imported liquor or all kinds of wine made in India would not fit in the description of the rectified spirit
Ordinary people would not consider rectified spirit to be foreign imported liquor or all kinds of wines made in India
That is not the natural meaning as understood by common people
That is the yardstick by which this should be judged
The dictionary meaning also corresponds to the same view
Wine according to Collins Dictionary of the English language means an alcoholic drink produced by the fermenting of grapes with water and sugar and an alcoholic drink produced in this way from other fruits flowers etc
By any common notion it could not be considered that the respondents having regard to the nature of the goods brought into the territory liquor or wine
The High Court has come to that conclusion after taking into consideration the ordinary notion
While giving a meaning to an item contained in the Schedule of articles the Court should normally give it a meaning intended by the framers of the Schedule by looking at the various articles mentioned in a particular 869 group
All the items in one group should be considered in a generic sense
It appears that Class III of the Schedule in the instant case was intended to deal with the subjects of Methelated denatured and rectified spirit which was brought within the limits of the Nagar Mahapalika for use as articles for lighting fuel washing and lubricants at the low rate of Rs005 per litre while liquor brought within its limits for use as an article of intoxication was intended to be subjected to levy of octroi duty at the higher rate of Re1 per litre
Class VI contains the following items Class VI Tobacco and other intoxicating goods 1
Field dried tobacco its chura and roots ordinary tobacco for eating and Hugga 2
Scented tobacco for eating and smoking Qimam Surti Sugni 3
Leaves of bidi
Bidi tobacco finished bidi prepared khamira tobacco
Cigarette cigar foreign type manufactured tobacco which is smoked through cigarette and pipe cigarette paper pipe and other such articles 6
Foreign imported liquor and all kinds of wines made in India
 The scheme is found in respect of the articles mentioned in the various other classes also
The High Court has noted Class I which deals with articles of food and drinks for men and animals
Item No 1 of the said class mentions wheat and paddy item No 6 mentions chemical fodder meant for animals and birds item No 16 mentions ice made of water and item No 17 mentions all cold drinks like Double Seven Thumps up Limca Gold spot etc
Likewise in Class III articles for lighting fuel washing and lubricants one finds at item 1 fuel and wood etc
We must reiterate that we are concerned with a duty which is imposed at the time of entry and not how it is used thereafter
The 870 taxable event for the imposition of octroi is the entry and the nature and type of the goods at the point of entry is the relevant factor
We may note that this view was taken by the Rajasthan High Court in Heeralal and others vs State AIR Having regard to the nature of the duty and the type of the goods with which we are concerned we are of the opinion that the rectified spirit is dutiable at the rate of Rs005 per litre and not on the basis that it was foreign wine or liquor
In the premises the view taken by the High Court is right
This petition therefore fails and is accordingly dismissed
NVK Petition dismissed


Summary:
 The suit premises consisting of lands and buildings were originally owned by Dewan Bishen Dass a former Prime Minister of the State of Jammu and Kashmir
The appellants purchased the same from his successor in interest Purnish Chandra by two sale deeds dated 1271967 and 8121967
The State Government tried to resume the land for setting up a tonga and lorry stand and for the purpose of development of the city and eviction of the appellants was ordered by the Estate Officer under the provision of the Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act 1959 on January 5 1968
The Municipality took forcible possession of the land and demolished the buildings thereon on January 11 1968
The appellants filed a Writ Petition in the High Court assailing the action of the Municipality
The High Court on 1971969 allowed the writ petition and held that the appellants were not unauthorised occupants possession can be taken only on payment of compensation and that Section 5 of the Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act was ultra vires
The State appealed to this Court and the judgment of the High Court was confirmed on the sole ground that as the Administrator of the Municipality had not complied with the provisions of section 238 and 239 of the Municipal Act the action taken by the Municipality in the matter of demolishing must be held to be entirely illegal and contrary to law State of Jammu and Kashmir vs 854 Haji Wali Mohammad  Ors  The Estate Officer thereafter issued a fresh notice under section 41 of the amended Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act 1959 intimating that the appellants were in unauthorised occupation of the public premises mentioned in the Schedule to the notice
The appellants filed objections stating that they were not in unauthorised occupation of the said land nor have they encroached upon the same and that the notice was wholly misconceived and illegal
It was further contended that the land was purchased by the appellants from the legal heirs of Dewan Bishen Dass that they had been in continuous possession made various improvements on the land and built houses and that the Estate Officer could not declare the person in possession as an unauthorised occupants after lapse of more than 80 years
The Estate Officer rejected the objections and directed the appellants to handover possession of the premises including structures to the Administrator of the Minicipality
The appellants preferred an appeal to the District Judge but the same was dismissed
The order of the Estate Officer was also challenged in a writ petition by the appellants but the same was dismissed by the High Court holding that the land being transferred by the legal heirs of Dewan Bishen Dass without obtaining prior permission of the Government or the competent authority in that behalf the lease stood determined and that the notice under the Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act 1959 was in accordance with law
In the appeal to this Court by Special Leave it was contended on behalf of the appellants that the lands taken on lease by Dewan Bishen Dass cannot be deemed to have been taken under the provisions of Ailan No 10 dated 7 Bhadon 1976 and as such section 12A and section 6 of the Land Grants Act 1960 are not applicable that the lands could not be acquired without providing for adequate compensation to be paid to the Wasidar for the buildings appurtenances and other improvements effected by him that no compensation in fact was awarded and that the notice under section 4 of the Act was liable to be cancelled and quashed as being not in accordance with law
855 The appeal was resisted by the State respondents contending that the appellants predecessor that is the original lessee was a Wasidar and that the lease was granted under Ailan No 10 dated 7 Bhadon 1976 that section 12 A of the Jammu and Kashmir Lands Grants Act is applicable that the transfer of the land had been made by the legal heirs of the original lessee Dewan Bishen Dass without the prior permission of the Government or any authority in that behalf that the lease stood determined from the date of the transfer the Government had the right of re entry on the land in accordance with the provisions of section 6 of the Land Grants Act that the appellants are unauthorised occupants and consequently the notice under section 41 of the Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act 1959 is not illegal but is in accordance with the provisions of the said Act
Allowing the Appeal  HELD 1
Dewan Bishen Dass predecessor of the appellants was a Wasidar and the lands were wasidari lands leased out to him for the purpose of constructing buildings
This lease was governed by Ailan No 10 as well as by the Lands Grants Act 1960
860F 2
The land was transferred by Purnish Chandra and others legal representatives of the original lessee Dewan Bishen Dass in favour of the appellants in contravention of the provisions of Section 12A of the Jammu and Kashmir Land Grants Act 1960
860G 3
The notice under section 41 of the Jammu and Kashmir Public Premises Eviction of Unauthorised Occupants Act is in accordance with law and as such it is valid
Under the Act as well as the rule the appellants are entitled to get compensation for the buildings and structures as well as of the improvements made on the land even though they are not entitled to get compensation in respect of the value of the land
860G H 4
The compensation in the instant case has not been determined nor the same has been paid
Appeal allowed
Judgment and Order of High Court set aside
Matter remitted to the District Judge who would expedite the determination of the compensation after determining the market value of the buildings structures and all the improvements effected on the land
861A B