INDIAN OIL CORPN. vs MUNICIPAL CORPN. .

The Supreme Court held that Section 113 of the Punjab Municipal Corporation Act, 1976, which authorizes the levy of octroi on goods imported within municipal limits, must be interpreted in accordance with Entry 52 of List II of Schedule VII of the Constitution. The Court ruled that the municipality cannot levy taxes on goods brought into the area for purposes other than consumption, use, or sale. Consequently, the Court allowed the appeal, overturning the High Court's decision that upheld the octroi duty, thereby clarifying the limitations of municipal taxation powers.