ASHOK MENON, J.

1. Does the State of Kerala have authority to impose transit levy on vehicles transporting denatured spirit from the Port of Cochin to Tamilnadu, is the question that arises for determination in these appeals before us.

2. The facts in Writ Petition Nos.29716/2004 and 30239/2004 in brief are that the writ petitioners therein are public limited companies involved in the businesses of manufacture and sale of Polyvinyl Chloride Resins (PVC) and alcohol based chemicals, respectively. One of the raw- material for their products is denatured spirit/industrial alcohol. Necessary licences have been obtained from the Tamilnadu State Government to possess, store, transport and consume the denatured spirit for that purpose.

3. Due to acute shortage of the denatured spirit in the internal market, the writ petitioners obtained permission from the Tamilnadu Government for importing denatured spirit, through the Port of Cochin. The writ petitioners' factories are situated in Mettur and Thiruchirappally, respectively, and the transportation of the spirit from the Port of Cochin to Mettur and Thiruchirappally has to be by road via. Walayar. Permission was sought to transport