LORD KRISHNA SUGAR MILLS vs MUNICIPAL COMMITTEE, SAHARANPUR

The Supreme Court held that under Rule 8(a) of the Saharanpur Municipality Rules for Tolls, 1949, a lorry laden with taxable goods must pass out of the municipal limits within half an hour to qualify for a transit pass and avoid toll tax. The Court clarified that the goods must leave the municipal limits without sorting or change of bulk, and since the goods were unloaded at the railway station within the municipal limits, the appellant was not entitled to the transit pass. The appeal was dismissed, affirming the High Court's decision.