JUDGMENT

B.P. Jeevan Reddy, J.-Leave granted.

2. The Bihar Legislature enacted the Bihar Tax on entry of goods into Local Areas for consumption, use or sale therein Act, 1993 providing for levy of tax on entry of scheduled goods into a local areas for consumption, use or sale therein at a rate, not exceeding five percent, as may be specified by the State Government. The goods mentioned in the Schedule are (i) motor vehicles, (ii) tobacoo products [excluding beeris], (iii) India-made foreign liquor, (iv) vegetable and hydrogenated oils, (v) cements and (vi) crude oil. The Act replaces Bihar Ordinance No. 19 of 1993. [Indeed, the said Ordinance was preceded by yet another Ordinance.] The expression "Loal Areas" is defined in clause (f) of Section 2 to mean the areas within the limits of a (i) Municipal Corporation, (ii) Municipality, (iii) Notified Area Committee, (iv) Cantonment Board, (v) Town Board, (vi) Mines Board, (vii) Municipal Board. (viii) Gram Panchayat and (ix) any other local authority by whatever nomenclature called constituted or continued under any law for the time being in force.

3. Section 3 is the charging Section. The levy is upon the entry of scheduled goods into a