Jewellers refuse to pay octroi on gold

Kapoor had called a joint meeting of the officials of the PMC octroi department and city jewellers to work out a solution over the ongoing dispute regarding octroi payment on gold and silver. A delegation of city jewellers led by Dajisaheb Gadgil and Fattechand Ranka participated in the meeting.

The media persons who were allowed to be present during the meeting witnessed heated verbal exchanges between Ranka and Kapoor over the contentious issue.

According to Ranka, the PMC had no legal right to impose octroi on gold since the schedule `O’, prepared by the PMC and sanctioned by the State government, listing down the items on which octroi can be charged by the corporation, does not include gold.

Kapoor pointed out to him that section 73 of the schedule empowers the corporation to collect octroi on “metals of all kinds and their articles”. Ranka argued that “gold” can not be included in the list of metals, as it was a precious metal nor can “gold ornaments” be termed “articles”.

He pointed out to Kapoor that there was a specific mention in the octroi schedule stating that the PMC should charge one and half percent octroi on silver and silver items.

“We are ready to pay octroi on gold provided the the corporation amends the schedule and makes a specific mention that octroi can be charged on gold”, he said.

Kapoor said that he has sought legal opinion over the matter and the legal department of the PMC has said that there was no need to amend the schedule as its section 73 clearly stated that the PMC is empowered to charge 2.5 per cent octroi on “metals of all kinds”.

“However, if you are pressing for the amendment then we would table a proposal to this effect before the civic body. But, meanwhile you should pay octroi on gold”, Kapoor told Ranka.

The demand was turned down by Ranka and all other jewellers who said that they would move court if the PMC continued to impose octroi on gold. “Then, we will meet in court”, said Kapoor.

The Association, however, agreed to pay octroi on silver and tentatively approved a formula worked out by the PMC for octroi collection. The jewellers were of the view that their silver consignments should not be opened at the octroi check posts as there was a likely hood that some unscrupulous persons or even the criminals might follow them and loot them on their way to their shops.

Kapoor assured that the consignments would not be opened at the octroi post. According to the formula worked out by the PMC the jewellers will not be required to pay octroi at the civic check post at all.

The Association will hand over a list of its members to the PMC. Details of the silver items imported by each member would be presented by the Association to the PMC on month end. The Association would pay otroi on behalf of its members, Kapoor said.

He said that when in doubt, the PMC would verify the details submitted by the Association from the central excise and income tax officials. “If cases of under-billing or false invoicing are detected then the PMC would take a punitive action against those guilty”, he added.

Jewellers who are not members of the Association, can also pay octroi on monthly basis on the silver items.