' RUSTAM S. SIDHWA, J.---This is a petition by M/s. Reliance Corporation, Octroi Contractor of the Hyderabad Municipal Corporation, petitioner, seeking leave to appeal against the judgment of a learned Division Bench of the Sindh High Court dated 4-6-1992 accepting the writ- petition filed by M/s. United Refrigeration Industries (Pvt.) Ltd., respondent No,1, and declaring that the charging of octroi, by the petitioner and the Hyderabad Municipal Corporation, respondent No,2, on electrical compressors imported by respondent No,1 under item No,84 of Schedule 'A' of the Hyderabad Municipal Corporation Notification dated 17-2-1991 was without lawful authority.
2. The brief facts of the case are that by a Public Notice dated 9-2-1989, the Hyderabad Municipal Corporation, respondent No,2, announced its intention of revising its octroi on certain items. In the said Public Notice it stated that it had the intention of revising certain items of the existing Octroi Schedule and to adopt a new Schedule 'A' which would apply on items as specified in the Pakistan Customs Tariff on ad valorem basis. It called upon the traders and the business community to file objections in respect of the proposed revised Octroi Schedules 'A' and 'B, which could be inspected in the office of the Taxation Officer. After receiving objections and giving hearing to the traders and businessm en who appeared, the Hyderabad Municipal Corporation, respondent No,2, by its Resolution No,579 dated 19-12-1990, adopted the new Octroi Schedule 'A' and the revised Schedule ',B' with certain minor alterations. The final notification in the said respect appeared in the Sindh Government Gazette dated 17-2-1991.
3. As and from 17-9-1991 the petitioner imposed octroi duty on the United Refrigeration Industries (Pvt.) Ltd., respondent No,1, which company manufactures refrigerators and air-conditioners, on the electrical compressors which it imported into the Hyderabad Municipal limits under item No,84 of Octroi Schedule 'A' of Notification dated 17-2-1991. Item No,84 of Octroi Schedule 'A' falls under Section XVI headed "Machinery and Mechanical Appliances Electrical Equipment; parts thereof'. The said item reads:-- "84. Boilers, machinery and mechanical appliance parts thereof 0.70% ad vol."
' Respondent No,1 made representations to the Mayor of the Hyderabad Municipal Corporation against the said recoveries and, having failed there, filed a writ petition in the High Court to have the said demand declared as without lawful authority. The said writ petition was allowed. The learned Judges of the High Court held that Octroi Schedule had to be strictly construed and that electrical compressors did not fall under item No,84 of Octroi Schedule 'A', as electrical compressors were not clearly specified in that article. The learned Judges held that by the mere fact that the working of Item No,84 constituted the heading of Chapter 84 of the Harmonized Pakistan Customs Tariff under which many items, including electrical compressors, fell, could not render the compressors liable to the payment of octroi duty under that item.
4. On behalf of the petitioner Octroi Contractor it is urged that "Public Notice" was given to the traders on 19-2-1989 intimating that the Hyderabad Municipal Corporation, respondent No,2, had approved the proposals for revision of certain items on the existing octroi schedule and of adopting Schedule 'A', which would apply on items as specified in Pakistan Customs Tariff on ad valorem basis. It is submitted that after hearing objections that were filed against the said proposals, the final notification was issued on 17-2-1991 and that therefore item No,84 appearing in Octroi Schedule 'A' reading "Biolers, machinery and mechanical appliances; parts thereof' would include all items that come under Chapter 84 headed "Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof' appearing under Section XVI of the Harmonized Customs Import Tariff and since electrical compressors come under item 8414.3000 under the said Chapter 84, electrical compressors are liable to octroi duty under Octroi Schedule 'A'. It is submitted that the Corporation was not bound to mention in the notification the fact that items specified in Octroi Schedule 'A' would be treated as those specified in the Harmonized Customs Import Tariff on ad valorem basis, as this was a matter which had been decided by the Hyderabad Municipal Corporation in its meeting when Resolution No,579 was passed on 19-12-1990.
5. The Harmonized Customs Import Tariff deals with customs duty imposed on items imported into Pakistan. It was introduced in 1988 to bring it in accordance with the Harmonized Code system. This Tariff comprises SECTIONS which broadly give a heading of the main character of the types of articles that fall under each Section. Each of the Sections then comprise Chapters, which broadly deal with items that fall under major groups. Under each Chapter follow a host of sub-groups comprising articles which are intended to be covered by that Chapter. Chapters 84 and 85 fall under section XVI which is headed "Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers and parts and accessories of such articles. Chapter 84 is headed "Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof'. Under Chapter 84 again fall various subgroups and under sub-group 84.14 falls item 8414.3000 reading "Compressors of a kind used in refrigerating equipment" with 40% ad valorem, customs duty shown next to it. It is the case of the petitioner that since item No,84 of Octroi Schedule 'A' contains the words "Boilers, machinery and mechanical appliances; parts thereof', which corresponds with the heading of Chapter 84 of Section XVI of the Harmonized Customs Import Tariff, electrical compressors fall under the said item 84 of Octroi Schedule 'A' and are liable to octroi. In the first instance there is nothing contained in the notification dated 17-2-1991 that items contained in Octroi Schedule 'A' would have to be read as items contained in the Harmonized Customs Import Tariff, if the items so correspond with similar items or headings in the Tariff. It is urged that since the Public Notice given by the Hyderabad Municipal Corporation on 19-2-1989 referred to the fact that the Corporation desired to adopt Schedule 'A' which would apply on items specified in Pakistan Customs Tariff, that this was sufficient declaration to all and that the Harmonized Tariff can now be read into the notification.
The draft of the notification which was circulated with the Public Notice dated 19-2-1989 did not contain any reference to the fact that items contained in Octroi Schedule 'A' would have to be read in the light of the Harmonized Customs Import Tariff, if the wording of the items corresponded with any of the items or heading given in the said Tariff. Again, the Resolution No,579 dated 19-12-1990 which the Hyderabad Municipal Corporation finally passed, after hearing the objections, also did not refer to the said fact. In these circumstances, by no stretch of imignation could the Harmonized Customs Import Tariff be read while construing items contained in the Octroi Notification dated 17- 2-1991. Legislation by reference cannot be stretched by reading items contained under broad headings under the Harmonized Customs Import Tariff into items contained in an octroi tariff, such as the one before us, where each item in the octroi tariff relates to distinct goods and each item itself is under a broad heading in the Tariff of a class that has no relationship with the broad heading under the Harmonized Customs Import Tariff. The decision of the learned Judges of the Sindh High Court appears to be legal and correct. No case for re-evaluation of the law is made out.
6. There being no merit in this petition, leave is refused and the petition is dismissed.