JUDGMENT - MOHTA V.A., J.:---Constitutional validity of the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987 ('The Act') is impugned in this batch of seventeen petitions.

2. Broadly stated, grounds are:

(a) Want of legislative competence in the State Legislature.

(b) Colourable exercise of legislative power.

(c) Violation of freedom of inter State trade and commerce declared by Article 301 of the Constitution.

(d) Vice of double taxation.

(e) Arbitrariness.

3. State Governor promulgated the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Ordinance, 1987 ('The Ordinance') on 30th September, 1987 after receiving instructions from the President as required under Article 213(1) of the Constitution. The Act which repeals the said ordinance received the President's assent on 18th December, 1987. The object of the Act will be crystal clear from the following statement appended to the ordinance:

"From 1984 onwards some States and the Union Territories adjoining the State of Maharashtra have reduced the rate of Sales Tax on motor vehicles and chassis substantially. Such reductions in tax rates by the neighbouring States have resulted in diversion of trade to those a

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