Opinion Sought On:

Chargeability of octroi on import of aircraft.

Premise:

An aircraft imported by the queriest company in a joint venture was levied with octroi.

Queries Raised by Shruti Desai & Co.:

  • Whether the Commissioner has power to levy Octroi by issuing a circular?
  • What are the current provisions of law?
  • Percentage of Octroi applicable if any and on what value it is leviable?
  • Is there any precaution that can be taken to avoid such a levy?

Our Opinion:

In our view the Aircraft in question will not land in the territory of Corporation but the same will land within the jurisdiction of International Airport Authority. The opinion was furnished in 2007.

This opinion was subsequently confirmed by Bombay High Court subsequently in series of matters in 2012 Jet Airways (India) Ltd. A Public vs Municipal Corporation.

In yet another matter the short question involved is whether the Queriest, the Petitioners, are entitled to concessional rate of Octroi duty under the provisions of Schedule 1A of the Maharashtra Municipalities (Octroi Rules 1968).

Commissioner has no authority or power to vary the rates of Octroi and the concessional rate of Octroi provided under the Act at his whims and fancies or that on the grounds that financial position of the Corporation is not viable.

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