Octroi liability on local entry of goods extends to sale for consumption, while re-exported goods remain outside the levy.

Octroi under the Bombay Municipal Boroughs Act is attracted when goods enter a local area for consumption, use or sale therein, and the inclusion of "sale" in the amended description did not create a new levy. The text explains that the taxable event is entry of goods for ultimate local consumption or use, so goods brought in for the company's use or for sale to persons who would consume them within the limits remained taxable. Goods re-exported outside the area were outside the levy and could be dealt with through refund rules. Because the amendment did not change the nature, incidence or rate of the tax, no fresh imposition procedure was required.

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Issues: Whether octroi levied under section 73(1)(iv) of the Bombay Municipal Boroughs Act, 1925 covered goods brought into the municipal limits not only for the company's own consumption but also for sale within the limits to consumers or dealers, and whether the 1954 amendment required a fresh imposition procedure before tax could be collected on such goods.

Analysis: Octroi, as understood in municipal taxation, is a tax on the entry of goods into a local area for consumption, use or sale therein. The word "sale" in the amended statutory description did not create a new levy but made explicit what was already implicit in the concept of octroi, namely that goods brought into the local area for eventual use or consumption by ultimate consumers within the area remained taxable even if the immediate purchaser was not the importer. The taxable event was the entry of goods for local consumption or use, not the identity of the person who first consumed them. Goods re-exported out of the area, by contrast, were outside the legitimate reach of the tax and could be dealt with by refund under the rules. Since the amendment did not alter the nature, incidence, or rate of the existing tax, the procedure for fresh imposition was not required.

Conclusion: The company was liable to octroi on goods brought into the municipal limits for its own use or for sale within the limits to persons who would consume or use them there, and also on goods sold within the limits even if the ultimate consumer took them outside the area. It was not liable on goods re-exported from the area. The challenge to the levy failed.

Final Conclusion: The octroi levy was upheld in substance, with relief confined to goods proved to have been re-exported and eligible for refund under the rules.

Ratio Decidendi: Octroi is attracted when goods are brought into a local area for ultimate consumption, use, or local sale leading to such consumption or use, and a sale within the area does not avoid liability merely because the final consumption occurs elsewhere; re-exported goods alone fall outside the levy.

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