JAGANNATH BHAGWAN DAS Vs. MUNICIPAL BOARD OF ALLAHABAD

JUDGEMENT

(1.) This appeal is on behalf of a firm of Government contractors who sued the Municipal Board, the respondent in the case, for a refund of octroi duty paid by them when they imported certain goods within the municipal limits. Their case was that the goods were obtained in order that they might fulfil certain contracts with the military authorities and that these goods, having been appropriated to the use of the Government under these contracts and the necessary certificates having been obtained from the military authorities, they wore entitled to a refund.

(2.) The Municipal Board resisted the application on the ground that the shape in which the goods were accepted by the Government officers was not the shape in which they were brought within the municipal limits. In other words, their case was that the rule as to refund of the octroi duty applied only where goods imported were handed over without any alteration of shape or size or character to the Government officers for Government purposes. In the course of trial it was found that a portion of the goods in question was handed over bodily, without any change, to the Government departments. As to these, the plaintiffs claim for refund has succeeded. As to the rest the suit has been dismissed by both the Courts below who accepted the contention of the respondent.

(3.) The question before this Court is one of pure law, viz., the interpretation of the Municipal Account Code, Ch. 3, Rule 27, Expl. 2. It says (leaving out more or less unimportant words): Goods, the property of which is not vested in the Government at the time they pass the barrier, but which are imported with a view to the fulfillment of a Government contract... shall, on passing the barrier, be declared in writing as intended... in fulfillment of a certain contract. The duty on them shall then be paid; and subsequently, if they actually do become the property of the Government, the duty shall be refunded on a certificate to the effect signed by the departmental officer concerned....