PepsiCo asked to move appellate body in octroi case

Beverage giant PepsiCo, which faces attachment of property over alleged evasion of local taxes by one of its distributors, was today asked by the Supreme Court to approach the appellant authority for relief.

A vacation bench comprising Justice G S Singhvi and Justice C K Prasad directed Pepsico India Holdings to approach the appellant authority against the order of the Thane Municipal Corporation slapping (TMC) duty on it.

"...Shall make an application to the appellant authority for grant of relief," said the SC bench giving two weeks to Pepsico India for filing the appeal.

Earlier, the Bombay High Court had refused to give any relief. It had also refused to stay TMC's action to attach Pepsico India Holdings' property in Mumbai and Delhi.

Counsel's appearing for the beverage major submitted that the TMC slapped duty demand of Rs 2.07 crore without even serving a show-cause notice.

TMC has directed the beverage major to pay Rs 18.85 lakh as octroi, along with ten times penalty, over import of goods worth Rs four crore in its area by a distributor, who is also charged with forging tax receipts.

PepsiCo's counsel submitted before the apex court that the action was being taken against it, despite the firm acting as a "whistle blower" by informing the authorities about the wrongdoing by its agency/distributor of forging the receipts of TMC.

TMC had served demand notice to the beverage major in October last year. When it received no reply, it started the process of seizure. The corporation authorities also seized four of PepsiCo's trucks loaded with soft drinks on May 10 and 11 as they entered the limits of the TMC.

TMC had seized fake octroi payment receipts from PepsiCo's distributor, who is in jail now.