Radhakrishnan, J.

Constitutional validity of the Kerala Liquor Transit (Amendment) Rules 2005 imposing enhanced fee for transit of liquor through the State of Kerala to Mahe alone, a part of the Union Territory of Pondicherry is under challenge in these appeals as discriminatory and offending free trade and commerce through out the territory of India.

2. Petitioners are engaged in the trade of liquor through various retail shops at Mahe, a part of Union Territory of Pondicherry. Government of Pondicherry in exercise of it powers conferred under rule 113(1) framed under the Pondicherry Excise Act, 1970 have issued necessary licenses for possession and sale of Indian made foreign liquors/foreign liquors and beer in the town of Mahe, which fails under the administration of Government of Pondicherry. Licence permits the licensees to import all kinds of Indian liquor or foregin liquors and beer from outside and also from the manufacturers of permit issued by the Licensing Authority of the Government of Pondicherry.

3. Transit Permit was not earlier necessary for transporting liquor from the Kerala State to another State. During the year 1989 Kerala State had insisted for transi