THE DHARANGADHRA CHEMICAL WORKS vs DHARANGADHRA MUNICIPALITY ANOTHER.

The Supreme Court ruled that the enhancement of octroi duty by the Dharangadhra Municipality was illegal as it violated the mandatory provisions of Sections 60 to 62 of the Bombay District Municipalities Act, 1901. The Court clarified that the power to impose octroi duty under the Saurashtra Terminal Tax and Octroi Ordinance, 1949, rested solely with the State Government, not the Municipality. The Court upheld the appellant's challenge against the enhanced duty, emphasizing the necessity of compliance with statutory procedures for valid imposition.