1. The petitioner -- the Municipality of Anand -- being desirous of levying an octroi upon goods imported for consumption within the municipal limits of the town of Anand obtained approval of the Government to the imposition of Octroi and imposed octroi with effect from 1-1-1955.

One of the articles upon which it was imposed was milk and the octroi imposed was 4 annas per maund. Some of the milk is milk brought within the municipal limits by societies which supply it to respondent 2 Union, who processes it and subsequently supplies it to the Government of Bombay for being sold in Bombay.

Sometime after the imposition it appears that the Milk Commissioner, Bombay as well as respondent 2 Union raised a contention before the Municipality with regard to the milk being property of Government inasmuch as respondent 2 Union was collecting it merely as its agent.

The Director of Local Authorities, Northern Division, Ahmedabad, also raised a Question as to whether the Municipality was entitled to levy the octroi upon the combined Weight of the milk and cans and whether it could levy it upon portions of maund of milk. The Municipality seems to have thought that these objections were fai