R. B. Misra, J. - (1.) The present appeals by certificate are directed against a common judgment of the Bombay High Court dated 13th of February, 1969. By the impugned order the High Court dismissed the petitions filed by the appellants under Article 226 of the Constitution challenging the demand of octroi duty by the Municipal Corporartion of Poona.
(2.) The Bombay Provincial Municipal Corporations Act, 1949 (for short 'the Act') came into operation in the City of Poona on 15th of February, 1950. Section 127 (2) thereof authorises the Corporation to impose octroi and other taxes. Section 149 prescribes the procedure to be followed in levying taxes. Insofar as it is material, it reads: "149. (1) In the event of the Corporation deciding to levy any of the taxes specified in sub-section (2) of Sec. 127, it shall make detailed provision, in so far as such provision is not made by this Act, in the form of rules, modifying, amplifying or adding to the rules at the time in force ........ (2) the rules shall be submitted by the Corporation to the Provincial Government and the Provincial Government may either refuse to sanction them or refer them back to the Corporation for further consideration or sanction either as they stand or with such modification as it thinks fit, not, however, involving an increase in the rate or rates of the levy or the extent thereof".
(3.) It appears that sometime in the year 1957 the Corporation in order to boost industrial development and to encourage the industrialists to establish industries in the city, had decided to give certain concession in the nature of exemption from octroi duty on certain products under certain conditions. Pursuant to this objective the Corporation made Rule 62-B in -Chapter VIII to the Schedule of the said Act in 1957. It reads: "62-B. "Industrial Estate or Area" means the area which Corporation may from time to time demarcate for the purposes of the rule as the area in which industries can be suitably located in the interest of industrialisation of the city of Poona. In respect of any raw materials or machinery imported by any industrial manufacturing concern established or to be established in the industrial estate solely for the purposes of manufacturing finished articles in the said industrial estate, 'the Commissioner shall not for a period of twelve years only, from the date on which this rule comes into force, levy octroi..... ". Under this rule no levy of octroi was to be made for a period of twelve years from the date on which the rule came into force.;