Cola giants challenge three-fold octroi by civic body

The Bombay High Court has reserved order on a petition filed by Pepsico and Coca Cola challenging three-fold octroi charged by a municipal body on their product.

According to the Cola giants, the Sangli-Miraj-Kupwad Municipal Corporation had levied a 3 per cent charge on the aerated water, 3 per cent on the cost of bottles and 3 per cent on the value of crates, with retrospective effect from 1997.

Pepsico was asked to pay Rs 24.63 lakhs, Coca Cola was charged Rs 1.08 crore for 8.23 lakh bottles and 42.31 lakh bottles, respectively sold in the municipal corporation limits between April 1997 and March 2010.
    
The Cola giants contended that the Corporation can charge only on the aerated water as octroi is levied on items consumed in the corporation limits. After consumption, the bottles and crates are removed from the Corporation limits for refilling and hence octroi cannot be levied on them.
    
Janak Dwarkadas, Counsel for Pepsico, argued that no Corporation in Maharashtra charges three-fold octroi.
    
After hearing arguments, Justice Ranjana Desai and Justice R V More reserved the order.