- (1.) Under appeal are the judgments and orders of Division Benches of the high Court of Allahabad allowing writ petitions filed by the respondents.
(2.) The High Court had earlier struck down sub-section (3) of Section 5 of the U. P. Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1972 ("the Act"). It was replaced by the sub-section which has now been struck down. It reads thus: "5.(3) A person to whom a permit referred to in clause (b) or clause (c) or clause (d) of sub-section (2) is granted shall be liable to pay, in the manner prescribed, a tax at the rate of three rupees per standard bag of tendu leaves. "
(3.) The High Court was of the view that the U. P. State Legislature was incompetent to enact the said sub-section (3) because the tax therein was not on goods and it fell, accordingly, outside the purview of Entry 56 List II of the Seventh Schedule of the Constitution.;