MUNICIPAL COUNCIL OF JODHPUR vs M/S. PAREKH AUTHMOBILIES LTD .

The Supreme Court held that under Section 104 of the Rajasthan Municipalities Act, 1959, octroi tax can only be levied if goods are sold, consumed, or used within the municipal limits. The Court ruled that the Municipal Council's attempt to charge octroi on goods meant for consumption outside its limits was invalid, as the actual sale occurred outside the municipality. The Court directed the refund of octroi tax already paid by the respondent, affirming that the levy was not applicable in this context.