S.B. Civil Second Appeal No.101/94 Municipal Corporation, Kota Vs. M/s.Foreign Import & Export. Date:30/06/2008 HON'BLE Mr. JUSTICE ASHOK PARIHAR Mr. Sanjay Mehrishi, for appellant. None present for respondent. BY THE COURT: The dispute is in regard to levy of Dharmada Tax by the appellant-Corporation on the goods brought within the Municipal limits of Kota. Suit for injunction was filed by the plaintiff-respondent challenging not only the levy of Dharmada tax, but also octroi. The suit was partly decreed by the trial court vide judgment and decree dated 2.9.1983 to the extent that the appellant Corporation was restrained from recovering any Dharmada tax from the plaintiff-respondent. The appellant Municipal Corporation as also the plaintiff-respondent filed regular appeals before the lower appellate court. However, both the appeals were dismissed by the lower appellate court vide judgment and decree dated 6.12.1993 thereby maintaining the judgment and decree passed by the trial court. While referring to the judgment of the Supreme Court in the case of Municipal Council, Kota Vs. Delhi Cloth & General Mills Co. Ltd. & Ors., 2001(3) SCC 654, the present appeal was admitted by this court on the substantial question as to whether in view of judgment of the Supreme Court referred above, the Corporation is justified in claiming tax in question. After hearing learned counsel for the appellant, I have carefully gone through the material on record as also the judgment of the Supreme Court in the case referred above. Though the trial court had not referred to any judgment in regard to Dharmada tax, however, the lower appellate court had referred to the judgments of Division Bench of this court in which it had been held that the State Government as also the Municipal Corporation were not competent to levy Dharmada tax under the statute. The judgments of the Division Bench of this court, however, have been set aside by the Supreme Court in the case of Municipal Council, Kota (supra). The Apex Court held that the Dharmada tax being levied only on goods brought within municipal limits (of Kota) is in substance an octroi for purpose of carrying out public charitable objects, which appellant Municipal Board is duty bound to perform under Sections 98 and 99 of the Rajasthan Municipal Act, 1959 and other relevant provisions. The court further held that imposition of both octroi and Dharmada tax on some commodities listed in the Schedule to notification dated 13.5.1968 issued under Section 104(2) of the Municipalities Act authorising levy of octroi, does not involve imposition of double tax. Since the entire controversy as involved in the present matter has now been settled by the Supreme Court, in my opinion, both the judgments and decrees passed by the courts below cannot be sustained in the eyes of law. Accordingly, the appeal is allowed. The judgments and decrees passed by both the courts below are quashed and set aside. Consequently, the suit for injunction filed by the plaintiff-respondent is also dismissed. Cost made easy. (Ashok Parihar) J.