JUDGMENT

TULZAPURKAR, J. :—The aforesaid five appeals, the first two on a certificate granted by the Madhya Pradesh High Court and the last three by special leave granted by this Court, raise a common question in regard to refund of octroi duty collected by the appellant-Council from the respondent firms and are, therefore, disposed of by common judgment. The principal question raised in these appeals relates to the proper construction of R. 27 of the Octroi Rules of Damoh. Municipal Council (the appellant) framed in exercise of powers conferred by Ss. 71, 76 and 85 of the Central Provinces and Berar Municipalities, Act, 1922 - which Rules were continued in operation even after the coming into force of the new Act, the Madhya Pradesh Municipalities Act, 1961 and the question arises in these circumstances :

2. The two respondent firms in the two sets of appeals (M/s. Vraj Lal Manilal and Co. and M/s. Prabhudas Kishoredas) carry on business of manufacturing and selling bidis in Damoh and other cities in Madhya Pradesh and for that purpose they import tobacco and other raw material, into the municipal limits of Damoh city and after manufacturing bidis out of such imported raw material