CANTONMENT BOARD,DEHU ROAD & ANR. vs MAHINDRA OWEN LTD. & ANR.

The Supreme Court dismissed the appeals, holding that the trailers/water tankers supplied to the Defence Department do not fall under the scope of items listed in the First Schedule of Notification No SRO 318 dated 29.10.59, specifically under Entries 3, 11, 14, and 16(b). The Court further clarified that even if these items were covered, the imposition of octroi duty would be illegal as per clause (vi) of Schedule II, which exempts 'Military Stores' from such duties. The term 'Military Stores' was interpreted broadly to include trailers/water tankers essential for military use, thus affirming the legality of their supply without octroi duty.