MUNICIPAL CORPORATION OF THE CITY OF BARODA vs BABUBHAI HIMATLAL

The Supreme Court upheld the validity of Standing Order No. 3 framed under Section 466(1)(A)(f) and Section 147 of the Bombay Provincial Corporations Act, 1949, allowing transporters to carry goods in transit through municipal limits upon payment of a supervision fee without octroi. The Court clarified that the Commissioner had the authority to frame such standing orders, and the fee was not a tax but a charge for services rendered, satisfying the quid pro quo requirement. The appeal was allowed, reversing the High Court's decision that deemed the standing order illegal.