Judgment

SHAH, J. :- In a group of petitions presented before the High Court of Kerala the appellants challenged the validity of the levy of "timber-tax"by the Corporation of Calicut on the grounds, inter alia, that the State Legislature is incompetent to impose that tax under the Kerala Act 30 of 1961. Govindan Nari, J., declared that the Legislature was incompetent to enact Section 126 of the Calicut City Municipal Act, 1961 (30 of 1961). The decision of Govindan Nair, J., was reversed in appeal by a Division Bench of the High Court and the petitions were dismissed.

2. By virtue of Article 246 read with Schedule VII, Item 52, List II of the Constitution, the State may legislate in the matter of "tax on the entry of goods into a local area for consumption, use or sale therein". The appellants content that Section 126 conferring authority to impose timber tax violetes the restrictions upon the legislative power imposed by the Constitution and on that account is void.

3. Section 98 of the Act enumerates the taxes and duties which the Municipality may levy and one of the taxes described in clause (e) is " tax on timber brought into the city". Section 126 declares a charge of tax on timb