G. C. BHARUKA, J.

( 1 ) THE petitioners herein are engaged in the business of manufacturing various commodities. Their manufacturing units are situated within the jurisdictional limits of "local areas" as defined under section 2 (5) of the Karnataka Tax on Entry of Goods Act, 1979 (hereinafter "the Act" only ). For the purpose of their manufacturing process, they purchase the raw materials like chemicals, petro products, based oil, beedi leaves, bulk drugs and/or packing materials from outside the State of Karnataka and after causing entry thereof in the said local areas, consume the said goods in their manufacturing process or packing of finished products.

( 2 ) ACCORDING to the petitioners, though, under Notification No. FD 112 CET 93 (III) dated March 30, 1994 read with Notification No. FD 109 CET 97 (8) dated March 31, 1997 (hereinafter referred to as the "first" and "second" notification) issued under section 3 (1) of the Act, the raw materials brought by them in the local areas, which having been purchases from outside the State of Karnataka, have been made liable for levy of entry tax at 1 per cent but similar goods of karnataka and brought into those very local areas have

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