POONA CITY MUNICIPAL CORPORATION vs DATTATRAYA NAGESH DEODHER

The Supreme Court held that the imposition of a tax on octroi refund by the Bombay Municipal Corporation was invalid under Section 127(4) of the Bombay Provincial Municipal Corporation Act, 1949, which prohibits such a tax. The Court ruled that the deduction made by the Corporation was not justified as no standing order under Section 466 prescribed any fee. It affirmed that the respondent was entitled to claim the refund and that the suit was not barred by limitation under Section 487 of the Act, allowing the appeal in favor of the respondent.