NAGAR MAHAPALIKA BAREILLY vs STATE OF U.P. & OTHERS

The Supreme Court upheld the High Court's decision that the Nagar Mahapalika could not impose octroi duty on country spirit at the rate of Re.1 per litre under Entry 6 of Class VI, as it is not considered 'foreign imported liquor or all kinds of wine made in India' but rather rectified spirit, which falls under Item No. 7 of Class III at Rs.0.05 per litre. The Court emphasized that the taxable event for octroi is the entry of goods and their nature at that point. The interpretation of the terms in the notification must align with common understanding and dictionary definitions, which do not categorize rectified spirit as liquor fit for human consumption.