Entry tax on export-bound goods is inapplicable where goods enter a local area solely for export, not consumption, use or sale.

Entry tax under section 6(1) was confined to goods brought into the local area for consumption, use or sale there, consistent with the constitutional basis of octroi-like levy. Goods brought into the Calcutta Metropolitan Area solely for export through Calcutta port, and in fact exported, did not satisfy that condition, so no entry tax was leviable. The procedural exemption mechanism under section 9 and rule 15 for immediate export could not create a substantive tax charge where the levy itself was inapplicable. Non-compliance with that procedure therefore did not justify imposition of entry tax on export-bound goods.

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Issues: (i) Whether entry tax was leviable on goods brought into the Calcutta Metropolitan Area solely for export to Czechoslovakia through Calcutta port. (ii) Whether failure to apply for exemption under section 9 of the Act and rule 15 precluded relief from levy under section 6(1).

Issue (i): Whether entry tax was leviable on goods brought into the Calcutta Metropolitan Area solely for export to Czechoslovakia through Calcutta port.

Analysis: Section 6(1) of the Act levies tax only on entry of specified goods into the area for consumption, use or sale therein. The entry tax provision is aligned with the constitutional concept of octroi under entry 52 of List II, so the goods must be brought in for consumption, use, or sale within the local area. Where goods are brought only for export and are in fact exported, the constitutional basis for levy does not exist. The Court applied the principle stated by the Supreme Court that goods intended for export beyond the local area do not attract octroi or analogous entry tax.

Conclusion: Entry tax was not leviable on the disputed goods brought into the Calcutta Metropolitan Area only for export.

Issue (ii): Whether failure to apply for exemption under section 9 of the Act and rule 15 precluded relief from levy under section 6(1).

Analysis: Section 9 and rule 15 provide a procedural mechanism by which a dealer may obtain exemption for goods brought in for immediate export under supervision. That mechanism cannot create a substantive tax liability where the constitutional and statutory condition for levy under section 6(1) is absent. Non-compliance with the exemption procedure, by itself, could not justify imposition of entry tax on goods brought only for export.

Conclusion: The omission to seek exemption under section 9 and rule 15 did not justify levy of entry tax.

Final Conclusion: The goods were held not liable to entry tax, the declaration against levy was granted, and the applicants were relieved of the bank guarantee furnished under the interim order.

Ratio Decidendi: Entry tax or octroi is not leviable when goods are brought into the local area solely for export and are not intended for consumption, use or sale therein; procedural failure to seek export exemption cannot create a substantive tax liability where the levy itself is constitutionally inapplicable.

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