MUNICIPAL COUNCIL, KOTA, RAJASTHAN vs THE DELHI CLOTH & GENERAL MILLS CO.LTD.

The Supreme Court examined the nature of the 'dharmada' levy imposed by the Municipal Council, Kota, under the Rajasthan Municipalities Act, 1959, specifically Section 104, which mandates the imposition of octroi on goods. The Court held that the levy of dharmada is a legitimate tax under the Act, clarifying that it is not merely an octroi but a distinct tax with historical roots dating back to 1860. The Court upheld the validity of the dharmada tax, affirming the authority of the Municipal Council to levy such taxes as per the provisions of the Act.