HIRALAL THAKORLAL DALAL Vs. BROACH MUNICIPALITY

JUDGEMENT

(1.) This appeal by special leave arises from the judgment of the Gujarat High Court dated January 27, 28 and 30, 1967. The two petitioners before the High Court were firms trading in certain commodities within the limits of the Municipal Borough of Broach. The grievance in one of the petitions was that the Municipality had collected certain amounts wrongfully, and the grievance in the other petition was that the Municipality had refused to refund some amounts even though they were refundable under its bye-laws. Both the petitions concerned goods which were "imported" within the octroi limits of the Municipality but came to be "exported" therefrom. The first petition was in respect of a consignment which was designated as a through consignment, and the second petition concerned goods in transit and goods for export other than those which could be called goods in transit. The amounts in dispute related to the levy of octroi under Section 73(1) of the Bombay Municipal Boroughs Act, 1925, hereinafter called the Act, which provides as follows :

(2.) The short question before us is whether this Court's decision in the Burmah Shell's case (AIR 1963 SC 906) (supra) squarely covers the present controversy or whether that decision requires reconsideration. The learned counsel have in fact confined their arguments to this narrow field.

(3.) In order to appreciate the controversy, it will be desirable to refer to the basic facts of the Burmah Shell's case (AIR 1963 SC 906) (supra). The Burmah Shell Oil Storage and Distribution Co. India Ltd., hereinafter referred to as the Company, was a dealer in petrol and other petroleum products which it manufactured in its refineries situated outside the octroi limits of Belgaum Municipality. It brought those products inside that area either for use or consumption by itself or for sale generally to its dealers and licensees who in their turn sold them to others. According to the Company, the goods brought by it within the octroi limits could be divided into four categories as follows: