PURI MUNICIPAL COUNCIL AND OTHERS vs INDIAN TOBACCO CO. LTD.

The Supreme Court upheld the Orissa High Court's decision that the Puri Municipal Council cannot levy octroi tax on non-fishermen merely in possession of fish and prawns within municipal limits, as per bye-law 11(2) of the Orissa Municipal Act, 1950. The Court clarified that 'evasion' refers to the act of bringing goods into the municipality without payment, and mere possession does not imply evasion or non-payment. The appeal by the municipality was dismissed, affirming that the taxing provisions must be strictly interpreted, and the municipality's inability to enforce tax collection at all points does not justify a broader interpretation of the law.