NAGAR PANCHAYAT, UNA vs UNA TALUKA SAHAKARI KHARID VECHAN SANGH LTD.

The Supreme Court held that under Section 307 of the Gujarat Panchayat Act, 1961, a Nagar Panchayat can continue to collect octroi previously imposed by a Municipality under the Saurashtra Terminal Tax and Octroi Ordinance, 1949. The Court found that the High Court erred in ruling that the Nagar Panchayat was not competent to collect the octroi, as the Ordinance remained in force and the Nagar Panchayat succeeded the Municipality, inheriting its rights and obligations. The appeal was allowed, affirming the Nagar Panchayat's authority to collect the tax.