JUDGMENT

VENKTARAMIAH J.:—The petitioners in then two batches of petitions filed under Art. 32 of the Constitution have questioned the constitutional validity of sub-section (2-A) of S. 9 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956) (hereinafter referred to as the Act) as amended by the Central Sales Tax (Amendment) Act, 1976 (Act No. 103 of 1976) (hereinafter referred to as the Amending Act) and S. 9 of the Amending Act validating the levy of penalties under the Act with retrospective effect.

2. The petitioners are dealers under the Act having their places of business in the States of Maharashtra, Haryana etc.

3. For the purpose of understanding the points of dispute raised in these cases, it is necessary to deal with the history of the legislation relating to taxes on inter-State sales and purchases of goods during the post-Constitution period. Under Entry 54 of List II of the Seventh Schedule to the Constitution, the power to levy tax on sale or purchase of goods other than newspapers was assigned to the State Legislature. The power to levy taxes on the sale or purchase of newspapers and on advertisements published therein was, however, assigned to Parliament under Entr