VIJALPORE MUNICIPALITY Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THIS petition has been preferred challenging order dated 18-10-1999 (Annexure-A) made by the respondent-State government in exercise of powers under section 99 (1) of the Gujarat Municipalities act, 1963 (the Act ). The petitioner is a municipality who granted a contract for collection of octroi under provisions of Section 99 (1) of the Act after passing the necessary resolution bearing No. 265 on 7-2-1998. Respondent No. 3 is the contractor who was awarded the contract on the basis of being the highest bidder. Respondent No. 3 accordingly started collecting octroi as per terms of the contract.

(2.) IT is the say of the petitioner that respondent No. 2 has not only failed to make payment of octroi but has indulged in multifarious litigations to avoid payment of octroi. The petitioner has referred to proceedings before civil Court as well as proceedings before this Court to emphasis the aforesaid fact.

(3.) THE learned advocate for the petitioner has assailed the impugned order on the ground that in the first instance, the impugned order has been made by the respondent-State government in purported exercise of powers under Section 99 (1) of the act by granting absolute exemption without hearing the petitioner who is directly affected; and secondly, the impugned order has been made retrospectively applicable from 1995-96 namely, from the date of commencement of commercial production and for a total period of five years without any justification for such blanket exemption. Inviting attention to the provision of Section 99 (1) of the Act it was contended that the said provision does not indicate that the state Government has any powers to grant exemption of the nature stated in the impugned order dated 18-10-1999.