JUDGMENT

Kirpal, J.-The common question of law which arises in these appeals by special leave relates to the validity of Section 7(5) of The Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to for the sake of convenience, "the Entry Tax Act"). The said provision having been successfully challenged by the respondent before the Madhya Pradesh High Court, the State of Madhya Pradesh has filed the present appeals.

2. The facts, which are relevant for deciding the point in issue lie within a very narrow compass. The respondents are stated to be engaged in sale and purchase of various articles as raw material, some of which are brought into the local areas. They manufacture the finished goods which are sold in local areas in which they are manufactured and, subsequently, are sold outside the local area. The respondents are all registered dealers both under the Central and the State Sales Tax Act and it is the provisions of that act which are applied for assessment and recovery of entry tax.

3. The Entry Tax Act was enacted with the object of levying tax on the goods brought into the local area for consumption, use or sale therein. Section 3 is