LexBURMAH SHELL OIL STORAGE & DISTRIBUTING CO. INDIA LTD. versus THE BELGAUM BOROUGH MUNICIPALITY
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1961 C...;,,~ ~ ,_,.,,,~, ... ' li.bn1J. Sa x..,,, J. 1962 216 SUPREME COURT REPORTS [1963] SUPP. brought to our attention in support of that sub· miaion. In this view of the matter the answer given by the High Court to the second question was correct and the asses.5ment made under s. 34(l)(b) of the Act after four years from the end of the relevant as.5essment year was out of time. This is the only question which survives for decision and in our opinion the High Court answered it correctly. These appeals therefore fail and are dismissed with costs. One hearing fee. A ppe,al8 diamissed. -- BURMAH SHELL OIL STORAGE & DISTRIBUTING CO. INDIA LTD. v. THE BELGAUM BOROUGH MUNICIPALITY (S. K. DAS, J. L. KAPUR, A. K. SARKAR, M. HmAY.t.TULLAH and RAGHUBAB DAYAL, lJ.) Octroi-Levy of Octroi on good& by Belgaum Municipality -Oo11SUmption, """ or Mlle-Mooning' of-Difference bUwttn T...,,.inal lax and Octroi-Bombay Municipal Borougha Act, 1925, (Bom. 18 of 1o25), •· 13. The appellant company deals in petrol and other petroleum products which it manufactures in its , refineries situated outside the octroi limits of Belgaum Municipality. It brings those products inside the said area either for use or con. sumption by itself or , for sale generally to its dealers and licensees who in their turn sell them to others. , The Company alsO directly sells its products to Government, both civil and military, and to local bodies and big private concerns. The goods brought by the company within the octroi limits fall into four categories, viz. (i) goods consumed by ~he, Company, (ii) goods sold by the Company through its dealers or by itself and I f- -, 2 S.C.R. SUPREME COURT REPORTS 217 consumed within the octroi limits by persons other than the Company, (iii) goods sold by the Company through its dcalcn or by itself inside the octroi limits to other persons but consu· med by them outside the octroi limits and (iv) goods sent by the Company from its Depot inside the octroi limits to extra· municipal points where they arc bought and consumed by persons other than the Company. The Company filed a writ petition in the High Conrt against the respondents for a writ or writs to prohibit them from charging octroi from the Company on its products brought inside the octroi limits for sale. The writ petition was dis- missed by the High Court. The appellant came to this Court by certificate under Art. 133(i)(b) of the Constitution. During the course of arguments, the respondents agreed to grant a refund on those goods belonging to the appellant company which were actually sent outside ortroi limits. The appellant also admitted its liability to pay octroi on goods consumed by itself. This Court was required to give its decision only on the rest of the tw., categories of goods. HeW., that the Company was liable to pay octroi tax on goods brought into local area (a) to be consumed by itself or sold by it to consumers direct and (b) for sale to dealers whe in their turn sold the goods to consumers within the municipal area irrespective of whether such consumers bought them for use in the area or outside it. The company was held not liable to oetroi in respect of goods which it brought into the local area and which were rc-ezportcd. The word consumption in its primary sense means the act of consuming and in ordinary parlance means the use of an article in a way which dC!troys, wastes or uses up that article. But in some legal contexts, the word •consumption has a wider meaning. It is not necessary that by the act of consumption the commodity must be destroyed or used up. Octroi and terminal tax rcoemblc in the sense that they arc both lcviablc in respect of goods brought into a local area. Othcrwiilc, they arc quite different from each other. While terminal taxes are lcviable on goods "imported or exported" from municipal limit!' denoting thereby that they arc connected with the traffic of goods, octrois arc leviablc in respect of the goods brought into a municipal area for consumption or we or sale. The history of these two taxes shows that while terminal taxes ~ere a ki?d of octroi w~ic~ were conc~rned only with the entry of goods m a local area 1rrC!pectivc of whether they would be' used there or not, octrois were taxes on goods brought into 1961 B,,,_,, SAtll Oil SIM'•p & Didri- htU.1 C1. I•'"' I.Ii. y, Tiu s.1,.. .. M=ii,· 1962 Burmah $h.tll Oil· Stor:ac•
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