PALANPUR KARIANA MERCHANTS ASSOCIATION Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioners have challenged the decision of the respondent Municipality of revising and increasing the rates of Octroi as per the public notice dated 25th August, 1989 at Annexure "D" to the petition. As per the said public notice issued under Sec. 103 of the Gujarat Municipalities Act, 1963, the Government had published the revised Octroi Rules sanctioned by their order dated 23-1-1989 and it was indicated in the notice that the Octroi prescribed by the revised Rules was to come into force from 1st October, 1989.

(2.) The increase in the Octroi rate under the revised Rules has been challenged by the petitioners on the following grounds, which were urged by their learned Counsel : 1. The objections received against the proposed increase of Octroi were not considered by the Government while giving sanction under Sec. 102 of the said Act. 2. The respondent Municipality had not separately opined on particular objections which were raised against the proposed increase in Octroi. 3. The right to trade of the petitioners was virtually taken away by reason of the excessive taxation imposed under the revised Octroi Rules. 4. In view of the delay in bringing into force the revised Octroi Rules after objections were invited, it should be inferred that the proposal for increasing the Octroi rates was abandoned by the Municipality. The contention raised on behalf of the respondent-Municipality is that the petitioners had not raised any written objections under Sec. 101(c) of the said Act and the objections which were received by the Municipality were all forwarded to the Director of Municipalities by the Administrator on 27-2-1986 alongwith his opinion. It was further argued that the increase in the rates of Octroi even as per the statement prepared by the petitioners was in the range of 1% to 1-1/2%, which cannot be said to be excessive.

(3.) It was contended by the learned Assistant Government Pleader appearing for the respondents Nos. 1, 2 and 3 that the sanction was accorded to the Octroi Rules in consonance with the provisions of Sec. 102 of the said Act.