JUDGMENT

R.K. Agrawal, J.

1) Challenge in the above said appeals is to the legality of the common judgment and order dated 05.01.2007 rendered by a Division Bench of the High Court of Orissa at Cuttack in Writ Petition (C) being No. 233 of 2002 and connected matters wherein the High Court allowed the petitions filed by the respondents herein.

2) Civil Appeal No. 5913 of 2008 is being treated as the leading case, hence, the facts of the said appeal are given below:-

a) The respondents are engaged in the sale and purchase of Motor Vehicles and are registered dealers under the Orissa Sales Tax Act, 1947 (in short ‘the OST Act’) as well as under the Central Sales Tax Act. The respondents had been paying entry tax on the goods when they were bought into the State of Orissa under Section 3(3) of the Orissa Entry Tax Act, 1999 (in short ‘the OET Act’). However, they were paying surcharge on the balance amount after deduction of the entry tax paid on the motor vehicles.

b) The Finance Department, Government of Orissa, by letter dated 20.11.2001, stated that the surcharge under the OST