Judgment

DESAI, J.:- Constitutional validity of Karnataka Tax on Entry of Goods Into Local Areas for Consumption, Use or Sale therein Act, 1979 (Act for short), and the Notification No. FD 66 CSL 79 dated May 31, 1979, issued by the State Government in exercise of the powers conferred by Section 3 of the Act is involved in this appeal by special leave at the instance of the State of Karnataka and one other.

2. Karnataka State enacted the Act to provide for the levy of tax on entry of goods into local areas for consumption, use or sale therein, being Karnataka Act No. 27 of 1979. Section 3 empowers the State Government to levy and collect tax on entry of scheduled goods into a local area for consumption, use or sale therein at such rate not exceeding 2 ad valorem, as may be specified by the State Government. Armed with the power conferred by S. 3, the State Government issued notification-l No. FD 66 CSL 79 dated May 31, 1979, specifying the local areas and the rates of tax at which the tax shall be levied and collected under the Act on the entry of scheduled goods mentioned in col. 2 of the table appended to the notification into local areas specified in the corresponding entries. Go