BAGALKOT CITY MUNICIPALITY vs BAGALKOT CEMENT CO.

The Supreme Court ruled that octroi duty was not applicable to the respondent's factory after the extension of the municipal district under Section 4 of the Bombay District Municipal Act, 1901. The Court held that the by-law defining 'municipal district' referred to the district as it existed when the by-law was framed, and thus the respondent was not liable for octroi duty. The dissenting opinion argued that the newly added area was included in the octroi limits, making the respondent liable for the duty on goods entering its premises.