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Levy of octroi on imported wool within the Notified Area Committee of Faridabad Township for "use." Analysis: The case involved a dispute over the levy of octroi on wool imported within the Notified Area Committee of Faridabad Township for "use." The appellants challenged the demand notice issued by the Committee claiming octroi on the imported wool. The High Court upheld the levy, stating that octroi was properly leviable as the wool was brought for "use" within the area. The Notified Area Committee of Faridabad Township, being a Municipality under the Punjab Municipal Act, had the power to impose taxes, including octroi. The power to levy octroi was subject to the goods being brought into the local area for consumption, use, or sale. In this case, the key issue was whether the wool was brought for "use" within the Notified Area Committee, justifying the octroi levy. The interpretation of the term "use" in the context of the Constitution and the Act was crucial. The Court emphasized that for octroi to be levied, the goods must be intended to become a new commodity or a component of a new commodity. The High Court's observation that dyeing the wool constituted "use" was challenged due to lack of evidence supporting the intention to convert the wool into a different commercial commodity. Referring to a previous judgment, the Court highlighted that mere processing of goods does not automatically qualify as "use" for octroi purposes. The focus should be on whether the goods were brought with the objective of transforming them into a different commercial product. The Court found that the issue required a factual determination based on evidence, which was lacking in the case. Consequently, the Supreme Court set aside the High Court's order and remanded the case for further proceedings. The High Court was directed to consider the evidence regarding the intention behind importing the wool into the Notified Area Committee and whether it was for the purpose of creating a new commercial commodity. The judgment emphasized the importance of factual assessment in determining the applicability of octroi and allowed for additional evidence to be presented in the High Court.
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