Judgment

B.P. JEEVAN REDDY, J.- Leave granted in the SLP.

2. Entry 52 in List II of the Seventh Schedule to the Constitution, says Shri Narasimha Murthy, should not be confined to an impost, formerly known as octroi. He submits that since it is a legislative entry, it must be liberally construed and full effect must be given to the words used therein. He says that when Entry 52 speaks of a tax on the entry of goods into a local area for consumption, use or sale therein, the words sale therein must be given their due and natural meaning and should not be restricted to a sale for the purpose of consumption or use of the goods sold within the limits of the local area concerned. The submission is urged with reference to the scope and ambit of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale therein Act, 1979.

3. The High Court of Karnataka has held following the decisions of this Court in Burmah Shell Oil Storage & Distributing Co. India Ltd. v. Belgaum Borough Municipality{1963 Supp (2) SCR 216, Hiralal Thakorlal Dalal v. Broach Municipality{(1976) 3 SCC 398} and Municipal Council v. Parekh Automobiles Ltd.{(1990) 1 SCC 367} that the levy created by Sect