BHAVNAGAR MUNICIPALITY Vs. TIRATHDAS RUPCHAND

JUDGEMENT

(1.) The respondents are dealers in bidis and have been carrying on their business within the municipal area of Bhavnagar. They have been importing bidis from outside into the Bhavnagar Municipal area. Since 1968 the municipality has been charging octroi duty on deshi bidis imported into the municipal area. Formerly the rate of levy was 60 paise per 20 Kgs.

(2.) On May 25 1970 the municipality proposed by a resolution to alter the quantum of levy and tentatively decided that the duty should be imposed at the rate of 30 paise per 1000 bidis. Objections from the members of the public were invited to this proposal.

(3.) After considering the objections received from the members of the public the municipality passed on November 6 1970 a resolution levying octroi duty at the rate of 30 paise per 1000 bidis Thereafter that resolution was sent to the Government of Gujarat for its sanction. On October 17 1972 the Government accorded sanction to it. On October 27 1972 the Chief Officer of the municipality published notice intimating to the members of the public that the Government had accorded its sanction to the resolution and that the new rate of levy would come into force from December 5 1972.