Judgment

R. B. MISRA, J.,- 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.

4. Later on the Corporation framed extensive new Octroi Rules under their resolution dated 7th of August, 1962, which received the sanction of the Government of Maharashtra on 28th of January, 1963. As the entire argument on behalf of the appellants is based on Rule 5 (8) of the said rules, it will be appropriate to quote the rule :

"5 (8). In respect of any raw materials or machinery belonging to and imported by the industrial, manufacturing, processing or assembling concern established or to be established in the industrial estate or area for the purpose of manufacturing, processing, or assembling finished articles in the said industrial estate or area, the Commissioner shall not levy octrai for a period of 10 years from the date of demarcation of such areas as an industrial estate or area. Provided that this exemption shall not be given in respect of any raw materials imported for the purpose of refilling, packing or repacking only.

Provided that no exemption from octroi shall be given or claimable unless the importer produces at the time of import but afterwards a certificate in the form prescribed in Schedule P signed by the proprietor or the manager of the said industrial concern certifying that the raw materials or machinery that are being imported are the property of the ownership of the said industrial concern and that the said materials or machinery are to be used or are intended to be used by the said industrial concern fo