JUDGMENT - A.P. SHAH, J.:---The first petitioner Bajaj Tempo Limited (hereinafter called the 'Company') is a company registered under the Companies Act and the second petitioner is its Managing Director. The Company is carrying on business of manufacture and sale of light commercial vehicles in different models such as mini-bus, station wagon, utility van, ambulance, pick-up truck, dual cabin pick-up truck, delivery van, autorickshaw etc. Their manufacturing unit is located at Akurdi within the municipal limits of the first respondent Pimpri Chinchwad Municipal Corporation. The first respondent Corporation was constituted on 5th October, 1982 under a notification issued by the State Government under section 3(2) of the Bombay Provincial Municipal Corporation Act, 1949. Prior to the constitution of the Corporation it was a municipality and were governed by the Pimpri Chinchwad Municipal Council, constituted under the Maharashtra Municipalities Act, 1965. The Company imports within the municipal limits various types of raw materials, components and spares. Prior to 5th October, 1982, the Pimpri Chinchwad Municipal Council had granted to the Company current account facilities in respect of payment of octroi under the Maharashtra Municipalities Act, 1965 and the Maharashtra Municipalities (Octroi) Rules, 1968. There is no dispute that the current account facility was continued after the constitution of the Corporation.

2.Under Rule 3 of the Maharashtra Municipalities (Octroi) Rules, a municipal council is entitled to levy octroi on various goods mentioned in Schedule I of the said Rules and is entitled to fix the rates of octroi not exceeding maximum rate and not less than the minimum rate prescribed in the said schedule for each type of goods. In pursuance of the powers conferred by the rules, the Pimpri Chinchwad Municipal Council levied octroi on various items and published a table of rates thereof. Entry No. 75 of Table of Rates of Octroi in force prior to 16th March, 1981 read as under :---

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Sr. No. Description of goods Percent

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75.Vehicles

(A) Motorcars, motorcycles Chassis

and lorries and spares thereof 2.00

(B) Bicycles, Perambulators, carriages,

all kinds of vehicles and their

components and spares. 2.00

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3.By passing a resolution dated, 30th January, 1981 bearing No. 621, the General Body of Pimpri Chinchwad Municipal Council decided to revise the rates of octroi of various items. By virtue of the said resolution, the then prevailing rates of octroi for Serial Nos. 75-A and 75-B were reduced to 0.5 per cent ad valorem to be effective from 16th March, 1981. In pursuance of the said resolution, a revised Table of Rates came to be published. Serial No. 75 of the said Table of Rates reads as follows :

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Sr. No. Description of goods Percent

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75. Vehicles

A. Motorcars, motorcycles, 0.50

Chassis and lorries 2.00

and spares thereof

B. Bicycles and their 0.50

spares parts

C. Perambulators,

carriages, all kinds

of vehicles and

their components0.50

and spares

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It is clearly seen that the above Table of Rates is at variance with the Resolution No. 621 dated 30th January, 1981. Under the resolution, the vehicles as well as "spares thereof" falling under Serial No. 75-A were liable to be taxed at 0.5 per cent whereas the revised table which came to be published prescribed different rate for the spares of the vehicles falling under Serial No. 75-A. F

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