The court reaffirmed that state-imposed taxation measures do not violate local governance autonomy, maintaining the constitutional framework allowing state regulation over municipal tax matters.

1. Since both sides agree that the challenge in these Writ Petitions is common, they are being decided by this common judgment.

2. For properly appreciating the arguments of the parties, the facts in Writ Petition No. 2720/2013 are referred to.

3. The challenge in this Writ Petition is to the legality and validity of S.127(2)(aaa), S.99 (partly) and S.152T of the Bombay Provincial Municipal Corporations Act, 1949 and now the Maharashtra Municipal Corporations Act . The provisions as particularly indicated in the prayer clauses together with Notifications are impugned as being ultra vires Part IXA of the Constitution of India and particularly Art.243W and Art.243X. The prayers read as under:
"(a) This Hon'ble Court may be pleased to invoke it's writ jurisdiction under Art.226 of the and be pleased to issue a writ of mandamus or a writ, direction or order in the nature of mandamus and be pleased to;
(i) hold and declare that S.127(2)(aaa), S.99(partly) and S. 152T of the Bombay Provincial Municipal Corporation Act, 1949 unconstitutional and ultra vires the provisions of Part IXA and Art.243W and Art.243X in particular of the and be struck down.
(ii) hold and declare that S.127(2)(aaa), S.99 (partly) and 99C (partly), 99D and 152T of the Bombay Provincial Municipal Corporation Act, 1949 as illegal being ultra vires the provisions of S.127(2) (a), 149, 454, 456 and 457 of the Bombay Provincial Municipal Corporation Act, 1949 and be struck down.
(iii) hold and declare that the Bombay Provincial Municipal Corporation (Local Body Tax) Rules, 2010 framed under S.152T as being ultra vires the provisions of Part IXA Art.243W and Art.243X of the and be struck down.
(iv) hold and declare that the Bombay Provincial Municipal Corporation (Local Body Tax) Rules, 2010 framed under S.152T as being ultra vires the provisions of S.127(2)(a), S.149, S.454, S.456 and S.457 of the Bombay Provincial Municipal Corporation Act, 1949 and be struck down.
(v) quash and set aside Notification dated 25.03.2010 and Notifications dated 25.02.2013 annexed at Exhibits B and G to this petition.
(b) pending the hearing and final disposal of this Writ Petition, the impugned action of the Respondent No. 1 of imposition of Local Body Tax in lieu of octroi on Respondent Nos. 2 to 6 and consequential Notification dated 25.03.2010 (Exhibit B) and Notification dated 25.02.2013 (Exhibit G) issued by Respondent No. 1 may kindly be stayed and the Respondent Nos. 2 to 6 Corporations be allowed to continue to levy Octroi in accordance with provisions of the Maharashtra Municipal Corporation Act, 1949 and on such terms and conditions as this Hon'ble Court deems fit and proper."

4. The Petitioner Nos. 1 to 5 are the Unions / Associations of employees in Thane, Pune, Pimpari Chinchwad, Nagpur and Navi Mumbai Municipal Corporations. The Respondent No. 1 is the State of Maharashtra. The constitutional validity of the above provisions has been challenged in the following facts and circumstances.

5. The Petitioners stated that it is a matter of common knowledge that there has always been an attempt on the part of the Traders who for their selfish motives have confronted Municipal Corporations governed under the Bombay Provincial Municipal Corporations Act, 1949 (for short "the said Act") on levy of Octroi. The traders from time to time have raised issues and protested levy of Octroi by the Municipal Corporations. Such protests were wholly unjustified and against the financial interest of the Municipal Corporations. However, the State Government from time to time acted at the behest of such traders and their Associations so as to initiate action to do away with Octroi and to replace the same with a system more beneficial to them. In furtherance of it's object to help the traders, the Respondent No. 1 vide a Notification dated 21st October, 2008 sought to impose cess on the D Class Municipal Corporations governed under the provisions of the said Act in place of Octroi. There a