TATA ENGINEERING AND LOCOMOTIVECOMPANY LTD. AND ANR. vs MUNICIPAL CORPORATION OF THE CITY OF THANE AND ORS.

The Supreme Court ruled that under Rule 25(3)(d) of the Maharashtra Municipalities (Octroi) Rules, 1968, octroi is not leviable on goods sold within municipal limits for export outside those limits. The Court held that compliance with procedural requirements for octroi refund is not a condition precedent for eligibility, provided the nature of the transaction justifies it. The doctrine of unjust enrichment was applied, concluding that the refund of octroi would not result in unjust enrichment as there was no evidence of recovery from customers. The appeal was allowed, overturning the High Court's dismissal of the writ petition.