Octroi refund for goods imported solely for re-export cannot be denied merely because sale occurred before export.

Octroi is not leviable on goods brought into a municipal area solely for re-export, and the refund mechanism under the Octroi Rules must be applied consistently with that principle. Where goods were imported only for eventual export, duly exported in accordance with the prescribed procedure, and were not brought in for use or consumption within the municipal limits, a sale within the municipal area did not by itself defeat the refund claim. The requirement that importer and exporter be the same person could not be read so rigidly as to deny refund in such circumstances. The refund was therefore payable.

---

---

Issues: Whether octroi refund could be denied on the ground that goods imported only for eventual export had been sold within the municipal limits and the importer and exporter were not the same person.

Analysis: Octroi is a tax on the entry of goods into a municipal area for consumption, use or sale therein. The refund scheme under the Octroi Rules permits refund where goods are imported for temporary detention and are in fact exported in accordance with the prescribed procedure. The condition in the export/refund rules requiring the importer and exporter to be the same person and prohibiting change of ownership must be read consistently with the law that goods brought into the local area solely for re-export are not exigible to octroi. Where the goods are not brought in for use or consumption within the municipal limits, but are imported only for eventual export and are duly exported after compliance with the prescribed formalities, a sale within the municipal area does not by itself defeat the refund claim.

Conclusion: The refund could not be refused merely because the goods were sold within the municipal limits before export. The petitioner was entitled to refund of the octroi deposited.

Ratio Decidendi: Octroi is not leviable on goods brought into the municipal area solely for re-export, and compliance with the refund procedure cannot be negated merely by a change in ownership where the goods were never imported for use or consumption within the area.

---