The State has legislative competence to levy entry tax on limestone and copper, as the field is not occupied by the Mines and Minerals (Regulation and Development) Act, 1957.

( 1 ) IN some of these writ petitions, provisions of Entry Tax Act, 1976 (for short the Act) are challenged as unconstitutional. In all the writ petitions, except M. P. No. 1520 of 1991, the notification dated 29-6- 1990 of the State Government issued under Section 4-A (2) of the Act specifying local areas in goods for imposition of entry tax at the rate of 10% for limestone and levy and collection of such entry tax are challenged. In M. P. No. 1520 of 1991, levy of entry tax at similar rate on entry of limestone within local area arc challenged. In M. P. No. 152 of 1991, similar levy of entry-tax into a local area is challenged. In some of the writ petitions, subsequent notification dated 2-2-199 is challenged.

( 2 ) WE have heard various counsel appearing for the petitioners and learned counsel appearing for the State.

( 3 ) LEARNED counsel for the petitioner have urged the following points for consideration: (i) The impugned notifications relate time (stone) and not limestone and, therefore the rate of tax imposed by the notification cannot be applied to entry of limestone into local areas caused by the petitioners except petitioner in M. P. No. 1520 of 1991. (ii) Section 4 (1) (i) of the Act is unconstitutional. (iii) Provision for levy of entry tax on limestone is beyond the legislative competence of the State. (iv) The notifications are contrary to the provisions of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 and, therefore, beyond the competence of the State Government. (v) The petitioners who quarry limestone do not acquire or obtain the same and cannot be taxed. (vi) Petitioners are not dealers in limestone -and hence entry tax cannot be levied. (vii) The factory of the petitioners in M. P. No. 405 of 1991 cannot be regarded as a local area and since they are not causing entry of limestone into the factory premises, entry tax cannot be levied.

( 4 ) THE Act has been enacted by the State Legislature to levy tax on entry of goods in lieu of octroi tax collected by local bodies, the main objective being to make transportation of goods trouble-free by abolition of Octroi Nakas, Entry tax is levied to compensate thelocal bodies for loss of octroi tax. There are three schedules appended to the" Act. Schedule I relates to goods which are exempt from entry tax. They are goods specified in Entries 6,41 and 42 of the said Schedule. Schedules II incorporates certain kinds of goods and prescribes rate of entry tax for entry of each type of goods. Schedule III is in three parts. Part 3 of Schedule III is a residuary provision for all goods other than those included in Schedules I and II and parts 1 and 2 of the third Schedule. The rates of tax are also prescribed. Limestone and copper with which we are concerned In these cases are not Included in Schedules I or II or parts 1 and 2 of the third Schedule. Part 3 would apply to them. On these goods, the rate of tax is 1 %.

( 5 ) SECTION 3 deals with incidence of taxation. Entry tax shall be levied, (a) on the entry in the course of business of a dealer of goods specified in Schedule II into each local area for consumption, use or sale therein, at the rates specified in the Schedule, (b) on the entry in the course of business of a dealer of goods specified in Schedule III into each local area for consumption in Schedule III into each local area for consumption or use of such goods as raw-material or incidental goods or as packing material or in the execution of works contracts, but not for sale and such tax shall be paid by every dealer liable to tax under the Sales Tax Act who has effected entry of such goods at the rates mentioned in Schedule III. The provisos contain certain exceptions.

( 6 ) SECTION 4 deals with the rate at which entry tax is to be charged. Entry tax payable by a dealer shall be charged on his taxable quantum relating to goods specified in Schedules II and III at the rates mentioned in the Schedule. 'taxable quantum