AKIL KURESHI, J.

1. These petitions arise out of common background. They have been heard together and are being disposed of by this common judgement. We may notice the facts as arising in Special Civil Application No.2834/1997.

2. Petitioner no.1 is a company registered under the Companies Act. Petitioner no.2 is the vice-president of the company. The petitioners have challenged the legality and validity of explanation 2(20) of the Surat City Municipal Corporation Octroi Rules, 1973(“the Octroi Rules” for short) introduced vide amendment dated 28.6.1996. To appreciate the challenge of the petitioners, background leading to such amendment be noted in brief.

3. The petitioners have a branch in the city of Surat. The petitioners deal in Viscose Filament Rayon Yarn. The petitioners bring such yarn within the city of Surat from their another branch located outside the city limits. Upon such goods entering the city limits, the Surat Municipal Corporation collects octroi duty in terms of the Octroi Rules. The dispute is with regard to valuation of the goods on the basis of which such octroi should be calculated. The case of the petitioners is that the octroi can be collected at the