In the biggest ever action, the Octroi/Local Body Tax Department of Nagpur Municipal Corporation has recovered tenfold Octroi Duty fine of Rs 1,55,95,040 from Aadya Motor Cars (Audi Mumbai West) Company Pvt Ltd, Andheri West, Mumbai.
Elaborating details of the case, Assistant Commissioner of Octroi/LBT Department Milind Meshram said that according to information received by Octroi Department of NMC on 25.8.2011 and after the preliminary investigation, it had come to notice that Audi Mumbai West Company’s Branch Manager Bobby Thomas had given bogus Octroi receipt to a purchaser. Subsequently, a thorough investigation was carried out. After the investigation, the Aadya Motor Cars Company Nagpur was on 21.8.2013 issued a demand notice/bill of tenfold Octroi Duty fine of Rs 1,55,95,040 for importing expensive cars in city limits during the period from 14.12.2010 to 10.8.2011.
After receiving the demand notice/bill, Aadya Motor Cars Company Pvt Ltd Mumbai filed an appeal petition. Subsequently, the Municipal Commissioner and Additional Deputy Commissioner probed the appeal and gave a ruling on July 19, 2013 upholding the action of Octroi Department as appropriate. However, due to non-payment of the demand notice/bill by the Aadya Motor Cars (Audi Mumbai West) Company Pvt Ltd, the Registrar, Court of Small Causes, Mumbai was on October 15, 2013 notified about the matter for Warrant of Distress or Attachment action against the company for recovery Rs 1,65,30,741.55 (Warrant Fee+Interest) in accordance with Chapter VIII, Rule 42 of the Municipal Corporations Act.
Accordingly, following the Nagpur Municipal Commissioner’s order of 7.2.2014, the Local Body Tax Department and Court of Small Causes, Mumbai on 4.3.2014 initiated seizure of movable/immovable property of Aadya Motor Cars Company Pvt Ltd Mumbai. However, the company assured to pay the amount as demanded by the Octroi Department and sought two days time for the same.
The seizure action was stalled by the Court of Small Causes, Mumbai following the company depositing Rs 1,55,95,040 in the High Court. The company deposited the amount after the High Court order of March 17, 2014 on the Writ Petition No. 5223 of 2013 filed by the Aadya Motor Cars Company Pvt Ltd against Nagpur Municipal Corporation. In the final ruling in the matter, the High Court dismissed the petition of the company on 7.10.2014. Subsequently, the NMC on November 28 received the tenfold Octroi Duty amount of Rs 1,55,95,040 deposited in the High Court by the defaulting company. For recovering the remaining amount of 9,35,701.55 (Warrant Fee+Notice Fee), the NMC will initiate further action.