Judgment - R. M. S. KHANDEPARKAR, J.

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( 3 ) BY consent, Rule is made returnable forthwith.

( 4 ) THOUGH the writ petition has been filed seeking various reliefs, the learned Senior advocate for the petitioners has sought leave to restrict the petition to the relief pertaining to the quashing of levy and collection of octroi by Dhule Municipal Corporation without following the procedure prescribed under the statute, and further has sought leave to withdraw the petition as regards other reliefs with liberty to file fresh petition for those reliefs.

( 5 ) FEW facts relevant for the decision are that: the petitioners are businessmen and ordinary residents of District Dhule. Respondent no. 3 Dhule Municipal corporation is the Corporation constituted under the Bombay Provincial Municipal corporations Act, 1949, (hereinafter called "corporation Act") and came in existence from 30th June, 2003. Prior to the establishment of said Corporation, Dhule municipal Council constituted under the maharashtra Municipal Councils, Nagar panchayats and Industrial Townships Act, 1965 (hereinafter called "municipality Act") was in existence.

( 6 ) THE Municipality Act was amended by Maharashtra Municipal Councils, nagar Panchayats and Industrial Townships (Amendment) Act, 1999, with effect from 1-5-1999 thereby the provision regarding the powers of Municipality to levy and collect the octroi was abolished from the Municipality act. Consequently, all the provisions relating to the entitlement and the matters connected therewith were also repealed by the said amendment Act of 1999. On account of abolition of said powers of the Municipal council to levy and collect the octroi, the government had formulated a policy to provide financial assistance for a certain period and consequently, under the Government resolution dated 10-10-2001 the municipalities were assured of certain compensation in lieu of octroi duty.

( 7 ) AFTER formation of Dhule municipal Corporation, it appears that a resolution came to be passed by the said corporation objecting the imposition of levy of octroi. The Commissioner of the corporation, however, by his letter dated 24-2-2004, opposed the said resolution expressing apprehension of the difficulties which the corporation would face in raising funds for day to day activities of the Corporation. It appears that the authorities, therefore, in exercise of the powers under the Corporation act rescinded the said resolution of the corporation against the levy of octroi.

( 8 ) ON 31-5-2005, a letter came to be issued by the Deputy Secretary to the government, Urban Development department, informing the Corporation that the Government had decided to compensate the Municipal Councils which were not authorised to levy and collect octroi, only for two years and on completion of two years the corporation will have to take steps to raise funds by itself by imposing cess for entry. The letter also indicated that in terms of the decision of the Cabinet the Corporation should levy octroi from the following year. It also informed the Corporation that since it would take long time to prepare necessary rules and to comply with other required procedure under the statute for the purpose of levy of octroi, it should proceed to levy and collect octroi by following the procedure laid down under the octroi Rules, 1969, which were framed under the Municipality Act and accordingly shall report to the Government.

( 9 ) SUBSEQUENT to the letter dated 31 -5-2005, it appears that some news items appeared in the local newspapers regarding the intention of the Corporation to levy entry cess and thereupon the present petition came to be filed challenging the alleged decision of the corporation to levy entry cess. Consequent to the reply filed by the Corporation disclosing that it has no intention at the moment to levy entry cess, and what is proposed by the corporation is to levy octroi and in that regard tender has been ordered to be issued for the pur

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