Judgment

SHINGHAL, J.:- This appeal by special leave is directed against the judgment of the Allahabad High Court dated March 26, 1976. It related to the validity of the imposition of octroi with effect from July 15, 1950, on certain goods brought within the Maunath Bhanjan Municipality, hereinafter referred to as the Board.

2. The challenge to the imposition was made by the Swadeshi Cotton Mills Co. Ltd., hereinafter referred to as the Company. The Company started constituting a textile factory, a part of which at any rate, fell within the area of the Board. It applied for an obtained exemption from the levy of octroi on its building material on the ground that it was a new concern. It however started bringing more articles within its premises, and the Octroi Superintendent made a demand for the payment of octroi on June 25, 1969. The Company tried to avoid the levy on the basis of the order of exemption, but the Executive Officer of the Board repeated the demand on May 30, 1970, and June 16, 1970. The Board also wrote to the State Government for permission to realise octroi from the Company. The Government gave the permission to realise the tax. The Company thereupon challenged the