M.L. SHRIMAL, J.—These two writ petitions Nos. 1217 of 1981 and 1210 of 1981, filed under Article 226 of the Constitution of India by M/s United Pictures and M/s T. Naveen Pictures respectively, involve common questions of law and facts. They are, therefore, disposed of by a common judgment.

2. Writ Petition No. 1217 of 1981 relates to the film Bin Maa Ke Bache and the writ petition No. 1210/81 appertains to the film "Kranti". M/s K.S. Enterprises, Motion Picture Producers, Bombay, producer of the film Bin Maa Ke Bache moved an application to the Government of Raj. for exemption of the exclusion of the film from payment of entertainment tax under the provisions of s. 7 of the Raj. Entertainment (Advertisement) Tax Act, 1957 (hereinafter referred to as the Act of 1957). The Government, after considering the material placed before it, vide order dated 25th February, 1981 (Annexure 7), granted exemption from payment of entertainment tax along with additional entertainment tax for a period of six months. The above noted order was published in the Rajasthan Gazette. In the terms of the order the petitioner was required to produce a bank guarantee in the sum of Rs. 10,000/- and the same was produced. The case of the petitioner, M/s United Pictures, is that prior to (he passing of the above noted order, dated 25th February, 1981 (Annexure 7), it purchased three prints of "Bin Maa Ke Bache". In view of the exemption from payment of entertainment tax, it further purchased four extra prints of the film in order to avail itself of the benefit of the exemption and for that purpose it paid an extra sum of Rs. 1,37,000/-. It also required a sole distributorship i.e. the right of the letting out on hire the films in the State of Rajasthan. It entered into agreements with the proprietors of various cinema houses with an express condition that the exhibition of the picture would be tax free. On 30th July, 198!, the Government of Rajasthan, after revising its opinion, passed another order, Annexure 9, whereby the exemption of recovery of entertainment tax and additional tax was withdrawn and the previous order, dated 25th February, 1981, relating to the picture Bin Maa Ke Bache" and order dated 20th April, 1981 pertaining to film "Kranti" relating to the exemption from payment of tax were cancelled.

3. The allegation of M/s T. Naveen Pictures is that the producer of the film "Kranti", M/s V.I.P. Film Bombay made an application to the State of Rajasthan under section 7 of the Act of 1957. The Government after considering the material placed before it passed an order on April 20, 1981(Annexure 5), exempting the above noted Hindi film "Kranti" from payment of entertainment tax including additional entertainment tax for a period of six months. The petitioner M/s Naveen Pictures are sole distributors of that film in the territory of the State of Rajasthan.

4. The Producer was directed to supply copies of the film to the Audio Visual Education Officer, Ajmer and for that purpose to execute a bond in a sum of Rs, 10,000/-. A bank guarantee was also submitted to the Government by the Producer. The distributors purchased three prints in the first instance. Its case is that after grant of exemption it further purchased four prints so that benefit of tax exemption could be availed of through out the territory of Rajasthan. After the issuance of the exemption order the firm entered into contract with the owners of the various cinema houses to exhibit the film and it also took on hire some of the cinema houses. As already noted above, on 30th July, 1981 the Government of Rajasthan revised its opinion and withdrew the exemption. The impugned order has been marked as Annexure 7 in writ petition No. 1210/81.

5. Learned counsel, appearing on behalf of the petitioners, has challenged the validity of the order, dated 30th July, 1981, withdrawing the exemption granted in favour of the petitioners on the following grounds :-

(i) The State Government has exhausted its po

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