BURMAH SHELL OIL STORAGE &DISTRIBUTING CO. INDIA LTD. vs THE BELGAUM BOROUGH MUNICIPALITY

The Supreme Court held that under Section 73 of the Bombay Municipal Boroughs Act, 1925, the appellant company is liable to pay octroi tax on goods brought into the local area for consumption by itself or for sale to consumers, regardless of whether the consumers use them within or outside the municipal limits. The Court clarified that 'consumption' does not necessarily imply destruction of the goods. However, the company is not liable for octroi on goods that are re-exported outside the octroi limits. The High Court's dismissal of the writ petition was upheld in part, with a refund agreed upon for goods sent outside the limits.