G. S. SINGHVI, J.

1. In these petitions, the petitioners have challenged the constitutionality of the Haryana Local Area Development Tax Ordinance, 2000 (for short, "the Ordinance"), the Haryana Local Area Development Tax Act, 2000 (for short, "the Entry Tax Act") and notifications dated May 5, 2000 issued by the State Government under sections 3 (1) and 11 (1) of the Ordinance on the ground that the State Legislature is not competent to enact such law and also on the ground that the provisions contained in the Ordinance, the Entry Tax Act and the notifications are violative of articles 14, 19 (1) (a) and (g), 286, 301 and 304 of the Constitution of India.

2. Most of the petitioners are incorporated as companies under the Companies Act, 1956. They are engaged in the manufacture of various types of goods in the factories situated in the State of Haryana or have business establishments in Haryana. Only three of the petitioners, namely, Leather Cloth and Plastic Manufacturers Association, New Delhi, New Santra Pipe Fittings Pvt. Ltd. , Hawrah, West Bengal and M/s. MRF Ltd. , Madras, who have filed C. W. P. Nos.9705 of 2000, 13374 of 2000 and 15546 of 2000 respectively, do not have factories or business establishments in the State of Haryana.

3. The petitioners (except those who have filed C. W. P. Nos.9705, 13374 and 15546 of 2000) have averred that for the purpose of manufacturing their products, they have been importing raw materials and other goods and have been paying various taxes including octroi levied under section 69 read with section 70 of the Haryana Municipal Act, 1973 (for short, "the Municipal Act" ). They have alleged that with a view to attract the voters in the forthcoming elections to the Legislative Assembly, the Government of Haryana abolished the octroi in November, 1999 and simultaneously increased the tax on consumption of electricity in the municipal areas under section 70 (1) (viii) of the Municipal Act at the rate of five paise per unit in place of one paise per unit, imposed trade tax on various establishments in municipal areas under section 70 (1) (i) of the municipal Act and tax at the rate of Rs.3 per bottle on the sale of liquor within the municipal areas in order to make good the loss caused to the municipalities due to abolition of octroi. Soon thereafter, the Governor of Haryana, in exercise of the powers vested in him under article 213 of the Constitution of India, promulgated the Ordinance, which was replaced by the Entry Tax Act with a view to tax transactions involving import and export of goods in the course of inter-State trade. They have further averred that even though the State is not competent to impose sales tax on such transactions, it has done so in the garb of imposing entry tax. In order to show that the entry tax is, in reality, a sales tax on the entry of goods into a local area, the petitioners have made the following assertions :

4. (a) If it was a genuine entry tax or octroi tax, all goods entering into a local area from outside the local area would have been taxed. However, goods which are moving from within the State although from outside the local area are not being taxed, thereby showing that it is not a genuine entry tax.

5. (b) Entry tax normally has nothing to do with sales tax. The two are cumulative, separate and distinct. However, the State Government is giving a reduction of tax in cases where sales tax has been paid in the State. Effectively and practically the reduction comes, more or less, to the same figure as the sales tax paid in most of the cases.

6. (c) Traders have been given exemption from the purview of the levy which would not have been the case, had it been a genuine entry tax.

7. (d) Under clause 12 of the Ordinance and section 12 of the Entry Tax Act, the tax authorities designated for administering the impugned tax are the sales tax authorities.

8. (e) The rate of tax has been fixed at 4 per cent which is the same rate as chargeable for most