( 1 ) BOTH these Letters Patent Appeals arise from the judgment of M. P. Thakker J. in Special Civil Application NO. 87 of 1971 decided by our learned brother on February 20 1971 The petitioner in the Special Civil Application is a trader and a resident of Anjar in the district of Kutch and the respondent in the Special Civil Application was the Anjar Municipality. In the Special Civil Application the petitioner was challenging the imposition of the of octroi on Kapas (cotton) ginned or unginned and Kalan (cotton-ponds ). the petitioner contended that the Municipality was trying collect octroi on cotton and cottonpods without due authority of law because the requirements of law for the imposition of this levy were not satisfied. The Anjar Municipality imposed octroi for the first time on April 1 1963 after the provisions of the Gujarat Municipalities Act 1963 had come into force. At the time when the octroi was imposed for the first time the Municipality was constituted as a Municipal Borough under the Gujarat Municipalities Act. The necessary rules and bye-laws were duly sanctioned before April 1 1968 and from that date octroi was being levied by the Anjar Municipality in accordance with the rules and bye-laws. Under Rule 3 A of the bye-laws provision was made for category of tax and taxable articles and it was provided that on all the goods that may be imported into the octroi limit of Anjar Borough Municipality mentioned in Schedule I annexed to the Rules for use consumption or sale octroi will be levied at the rates shown in such Schedule but the exemptions laid down in Schedule II will have to be observed. Thus it is clear that Schedule I set out the lists of articles on which the octroi could be levied and Schedule II set out the list of articles which were exempted from levy of octroi. IT may be mentioned that Schedule I was divided into two parts. In the first part of Schedule I were set out articles on which octroi was to be levied on valuation i. e. on ad valorem basis; where as second part set out the articles on which octroi was to be levied either on weight or measurement or quantity.

( 2 ) THE Rules which were framed before the octroi was levied with effect from April 1 1968 were framed under sec. 271 cl. (1) which permits the municipality to make rules not inconsistent with the Act and the Rules or orders made by the State Government under the Act inter a prescribing the taxes to be levied in the municipal borough for municipal purposes the circumstances in which exemption will be allowed the condition on which and the extent to which remission will be granted and the system on which refund will be allowed and paid in respect of such taxes. The bye-laws regarding the imposition of octroi and governing the system of octroi were made under sec. 275 (1) (1) which enables the municipality to make from time to time alter or rescind bye-laws not inconsistent with the Act fixing octroi limits and stations providing for exhibition of tables of octroi; regulating subject to any general or special orders which the State Government may make in this behalf the system under which refunds are to be made on account thereof when the animals or goods on which the octroi has been paid or articles manufactured wholly or in part from such animals or goods are again exported and the custody or storage of animals or goods declared not to be intended for consumption use or sale within the municipal borough; and prescribing a period of limitation after which no claim for refund of octroi shall be entertained and the minimum amount for which any claim to refund may be made. Under the Gujarat Municipalities Act 1963 (hereinafter referred to as the Act sec. 99 provides that subject to any general or special orders which the State Government may make in this behalf and subject to the provisions of secs. 101 and 102 a municipality may impose for the purposes of the Act any of the taxes set out thereunder and under cl (iv) of