RAM KRISHNA RAMNATH AGARWALOF KAMPTEE vs SECRETARY, MUNICIPAL COMMITTEE,KAMPTEE.UNION OF INDIA AND

The Supreme Court held that Section 66(1)(e) of the Central Provinces Municipalities Act, 1922, allows municipalities to levy octroi duty on goods brought within their limits for sale or use. It was determined that excise duty under Section 3 of the Central Excises and Salt Act, 1944, and octroi duty are fundamentally different taxes, thus the municipality's power to levy octroi is not inconsistent with the Central Government's power to levy excise duty under Entry 45 of List I of the Seventh Schedule of the Government of India Act, 1935. The Court affirmed the High Court's judgment, allowing the levy of octroi duty on tobacco for bidi manufacturing.