I.A. Ansari, J.

1. These writ petitions raise an issue of grave importance, and the issue is this whether the State is competent to levy entry tax on the goods imported into a local area from outside country ?

2. The Assam Entry Tax Act, 2001, (in short, 'the AET Act') was enacted by virtue of Entry 52 of List-II of the Seventh Schedule of the Constitution of India. The said AET Act provides for a levy of tax on the entry of goods into any local area for consumption, use or sale therein. Section 3 of the Act is the charging section, which reads as follows:

3. Levy of Tax. - (1) There shall be levied and collected an entry tax on the entry of the goods specified in the Schedule into any local area for consumption, use or sale therein at the rates shown against each item in the said Schedule and such tax shall be paid by every importer of such goods.

The entry tax payable by an importer under this Act shall be charged on the purchase value of the goods specified in the Schedule at the rates as shown in the said Schedule:

Provided that no such tax shall be payable on the entry of the goods which are meant or the exclusive use or consumption of the Defence Department of the Governme