Octroi valuation can include customs duty on imports where the rule uses a broad incidental-cost formula.

Customs duty paid on imported goods is includible in octroi valuation where the governing rule adopts an inclusive formula taking the invoice cost together with freight, insurance, duties and other incidental charges incurred until the goods reach municipal limits. Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1968 was construed broadly, with the listed items treated as illustrative rather than exhaustive, so that expenditure forming part of the importer's cost may be added even if not expressly named. On that construction, customs duty was properly included in the assessable value for octroi purposes.

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Issues: Whether customs duty paid on imported goods was includible in the value of the goods for charging octroi under Rule 17(a) of the Maharashtra Municipalities (Octroi) Rules, 1968.

Analysis: Rule 17(a) requires the value of imported goods to be taken as the cost price shown in the invoice together with freight, carrier charges, shipping dues, insurance, excise duties, sales tax, vend fee and all other incidental charges incurred until the goods reach the octroi limits. The enumeration is illustrative and not exhaustive. The rule is to be construed broadly so as to include expenditure that forms part of the importer's cost. Customs duty, though not expressly named, is a necessary incident of importation and there is no reason to exclude it from valuation, especially when duty countervailing has been treated as incidental in analogous context.

Conclusion: Customs duty was rightly held includible in the valuation for octroi purposes, and the challenge to the levy failed.

Ratio Decidendi: Where an octroi valuation rule adopts an inclusive and broad formula covering incidental charges incurred until arrival of the goods within municipal limits, customs duty paid on import may be added even if not expressly mentioned in the rule.

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