( 1. ) THIS is an appeal against acquittal, Under Section 417 (3) of the Code of Criminal Procedure, filed by the Municipal Council, Shivpuri, with the Leave of the Court, against an order of acquittal passed by the Additional District Magistrate, Shivpuri, dated 14th August 1968, acquitting the respondents of an offence Under Section 155 of the M. P. Municipalities Act, 1961.

( 2. ) THE prosecution case, briefly stated, is as follows. The respondents carry on business of retail sale of cloth under the name and style, m/s. Vishnu Vaatra Bhandar within the limits of the Municipality. On 11th December 1966, they imported 4 bales of cotton cloth worth -Rs. 7,666. 34 by a truck belonging to M/s. Daily Transport Service, but they paid octroi on goods worth Rs. 3,185. 68 only at the Kalar Bag Octori Out-post under octroi receipt, Ex. P. 2, as pei Bijaks, Exs. P. 4 to P. 8. They neither furnished any declaration in regard to the remaining goods worth Rs. 4,478,66 nor paid Rs. 44. 79 due as octroi thereon. The Octori-Inspectors, Radhelal Sharma and Baboolal Sharma, checked the goods while they were being unloaded at M/s. Vishnu Vastra Bhandar as they suspected that full payment of octroi had not been made. During the checking, the Municipal Accountant, Shitalprasad (P. W. 1) was sent for. The Municipal servants found that the respondents had not paid octroi on goods worth Rupees 4. 478. 66 and, therefore, they drew up a Panchanama. Ex. P. I which was signed by the respondent No. 1, Purshottamdas.

( 3. ) ON these facts the Municipal Council lodged a complaint against the respondents Under Section 155 of the Act for having defrauded the Municipality by evading payment of octroi-tax The respondents abjured their guilt and denied commission of the offence. The} disavowed all knowledge about the importation of the goods and pleaded that the business, M/s. Vishnu Vastra Bhandar, was owned by Mahavirprasad and Nandkishore. The respondent No. 1 however, admitted his signature on the Panchnama. The learned Additional District Magistrate has acquitted the respondents holding that since the prosecution has failed to prove that they were the owners of the shop styled as M/s Vishnu Vastra Bhandar, they could not he held liable for evasion of octroi duty

( 4. ) THE short question for consideration is whether the respondents could be held liable for evasion of octroi tax. Section 155 of the Madhya Pradesh Municipal Act, 1961, reads as follows: When any animal or goods passing into a Municipality are liable to the payment of octroi, then every person, who, with the intention to defraud the Council, causes or abets the introduction of, or himself introduces or attempts to introduce within the octroi limits of the said Municipality, any such animals or goods upon which payment of octroi due on such introduction has neither been made nor tendered, shall be punishable with fine which may extend to ten times the value of such octroi or Rs. 50/-whichever may be greater.

( 5. ) THE octroi tax is a tax levied on the entry of goods. The charging provision in Section 127 (1) (v) of the Act authorised the Municipal Council to impose octroi on animals or goods brought within the limits of the Municipality for sale, consumption or use within those limits. The taxable event, therefore, is the bringing of the goods within the Municipal limits and that must be for purposes of sale, use or consumption within such limits. Though the liability for payment of such tax is on the person importing the goods, the penal consequences for evasion Under Section 155 are wider. Under that section, every person who. with intention to defraud the Council, causes or abets the introduction of, or himself introduces or attempts to introduce within the octroi limits of the said Municipality any goods upon which the payment of octroi due on such introduction has neither been made nor tendered, is liable. Such a stringent provision had to be made by the Legislature as the evasion o