Law:

Section:

The petitioner through this Constitutional petition has sought a declaration that the order of respondent No. I dated 18-7-1966 is illegal. The relevant facts are that the respondent was engaged as a contractor for an execution for construction of Rasul-Qadirabad Link Canal and a new Barrage at Rasul. The Contractor has to import material both from abroad and within he country.

The same was taken to site through Rail. The petitioner was charging (a) West Pakistan Municipal

Committees Octroi Rules, 1964--12 Paisas per receipt for the goods in transit from the respondent No. 2. This arrangement went un-interrupted up to August, 1965. Thereafter the respondent No. 2 stopped this payment of transit fees. The trouble started when the petitioner served the said respondent with notice dated 18-5-1966 calling upon it to make a payment of Rs. 3,19,315.59 as Octroi charges for the goods imported by them with 10 times penalty. The respondent No. 2 disputed the legality of the claim. It was notified, in their reply to the aforementioned notice, that they are not liable to pay the amount as neither did material enter the Town nor did it pass through any Octroi Barrier. It was clarified that earlier the material was received by it and unloaded at Railway Station Mandi Bahauddin from there it was again loaded and dispatched to the sites but this arrangement was given up and instead the Railway Wagons as they are carried to the sites, therefore, it was not liable to pay any Octroi or transit charges. The petitioner turned down the plea of the respondent No. 2 and insisted for payment of Export duty under Rule 35 of the Municipal Committee Octroi Rules of 1964 as is clear from reply of the petitioner dated 17-5-1966. The Contractor finding no way out proceeded to vide order dated 18-7-1966. This is the order subject matter of this constitutional petition.