MUNICIPAL COUNCIL, DAMOH vs VRAJLAL MANILAL AND CO.

The Supreme Court held that Rule 27(b) of the Octroi Rules allows for a refund of octroi duty on imported raw materials used in the manufacture of goods that are subsequently exported, irrespective of whether the exported goods are identical to the raw materials. The Court clarified that the term 'manufacture' encompasses the creation of a distinct commercial commodity, and the proviso to the rule does not apply to manufactured goods. The appeal was dismissed as the appellant could not raise the limitation plea due to prior acquiescence.