KUNWAR RAM NATH AND OTHERS vs THE MUNICIPAL BOARD, PILIBHIT

The Supreme Court held that the exemption from octroi duty granted under the U.P. Government's order dated November 20, 1936, under Section 157(3) of the U.P. Municipalities Act, 1916, is no longer applicable following the publication of new bye-laws on May 18, 1960. The Court clarified that the nature of octroi has changed post-1960, and the levy under the new bye-laws constitutes a tax rather than a fee. Consequently, the Municipal Board was not entitled to collect octroi on sugarcane brought into its limits by the appellants by rail on the relevant date, allowing the appeal and quashing the proceedings against the appellants.