JUDGMENT

R.M.Shai, J.

1. The question that arises for consideration in these appeals, directed against the judgment and order of the Madhya Pradesh High Court, is whether entry tax on goods such as sugar on which no sales tax is leviable, could be subjected to levy under Section 3(1)(a) of the Madhya Pradesh Sthaniya Kshetra Me Mai Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as Entry Tax Act).

2. Even though legislative competence of the State Legislature was the principal attack on the validity of the levy in the High Court but the main thrust of challenge in this Court has been on the nature of levy, its ambit and whether it impedes free flow of trade and commerce in violation of Article 301 of the Constitution of India. Since there is no dispute on facts and the appellants who are dealers registered under the Sales Tax Act of the State have brought goods such as sugar which are specified in Schedule II of the Act from outside the State for consumption, use or sale inside the State, it is appropriate to extract Section 3 of the Entry Tax Act to appreciate the rival submissions :

"3. Incidence of taxation.- (1) There shall be levied an entry tax-

(a) on the entry in the