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Issues involved: Interpretation of the word "sale" in section 73(i)(iv) of the Bombay Municipal Boroughs Act, 1923 and reconsideration of the decision in Burmah Shell's case.
Summary: The Supreme Court heard an appeal regarding the interpretation of the word "sale" in section 73(i)(iv) of the Act and the need for reconsideration of the decision in Burmah Shell's case. The case involved two petitioners trading in commodities within the Municipal Borough of Broach, raising grievances against the Municipality's collection and refusal of certain amounts related to octroi levy. The High Court held that refund was claimable for goods meant for export, even if a sale transaction occurred within the octroi limits. It interpreted the word "sale" broadly, in line with the Sale of Goods Act. The petitioners sought special leave from the Supreme Court, which decided to examine the Burmah Shell's case for clarity on the issue. In the Burmah Shell's case, the Court clarified that octroi was leviable on goods brought for consumption, use, or sale within the local area. It held that the word "sale" included bringing goods for use or consumption by buyers within the area, even if not expressly mentioned in the octroi description. The Court distinguished between goods brought for consumption within the area and those re-exported. It established the liability for octroi based on the purpose of bringing goods into the local area. The Supreme Court found that the present case fell within the principles laid down in the Burmah Shell's case and upheld the interpretation of the law provided therein. The Court noted that no new arguments were presented to warrant a reconsideration of the previous decision. The appeal was allowed, setting aside the High Court's judgment and directing the respondents to determine the claims of the appellant in accordance with the Burmah Shell's case. The appellant was awarded costs. This judgment clarifies the interpretation of the word "sale" in octroi levy cases and affirms the principles established in the Burmah Shell's case regarding the taxation of goods brought into local areas for consumption, use, or sale.
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