Entry tax on goods entering a local area for sale there remains payable despite later removal by buyers outside the area.

Entry tax is attracted when goods enter a local area for sale there, because the levy follows the constitutional entry permitting tax on entry of goods for consumption, use or sale within that area. Applying the settled octroi principle, the decisive factor is the destination and intended use at the time of entry, not the buyer's later conduct. Goods brought into Durg for sale to dealers in that local area were liable even though the buyers later removed them for further sale, use or consumption outside the area. The exception for goods brought only for re-export, or where title and appropriation occur outside the local area, did not apply on the pleaded facts.

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Issues: Whether entry tax was payable on goods brought into the local area of Durg and sold there to dealers who thereafter took the goods outside the local area for further sale, use or consumption.

Analysis: The levy under entry tax is co-extensive with the constitutional entry permitting tax on entry of goods into a local area for consumption, use or sale therein, and the statutory provisions were construed in the light of the settled octroi principle that the decisive factor is the destination and intended use at the time of entry. Goods brought into the local area for sale within that area attract tax even if the buyer later carries them outside and uses or sells them elsewhere. The exception applies where the goods are shown to have been brought only for re-export or where title and appropriation occur outside the local area. On the facts pleaded, the petitioner caused entry of ascertained goods into Durg for sale there, title passed within Durg, and the purchasers themselves took the goods after completing the sale; there was no case of re-export by the petitioner or of appropriation outside the local area.

Conclusion: Entry tax was payable, and the challenge failed.

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