Judgment

SARKAR, J. : (On behalf of himself and S. K. Das and J. L. Kapur, JJ.) This is an appeal against a judgment of the High Court of Mysore which held that the respondent was not liable to pay any octroi duty to the appellant municipality in respect of dutiable goods brought to its factory as on a proper interpretation of the appellant s by-law fixing the octroi limits, the respondent s factory was outside those limits. The question that arises in this appeal is one of the interpretation of that by-law.

2. The appellant municipality was constituted under the Bombay District Municipal Act, 1901. Section 4 of the Act gives power to the Government to declare any local area to be a municipal district and to extend, contract, or otherwise alter the limits of any municipal district. Section 9 provides that there shall be a municipality for every municipal district. Section 59 of the Act inter alia provides that a municipality may subject to certain conditions impose "an octroi on animals or goods, or both brought within the octroi limits for consumption, use or sale therein." In exercise of its powers under this section, the appellant municipality imposed an octroi duty on certain goo