JUDGMENT The petitioners have by this petition prayed that notice, annexure A, may be quashed. It is also prayed that clause (1)(c), (d) and (e) of section 2 of the Entry Tax Act, 1976 may be declared ultra vires and unconstitutional. 2. Learned counsel for the petitioners has at the outset submitted that he is not challenging the validity of the aforesaid provisions; therefore, we need not examine the same in the instant petition. 3. Brief facts giving rise to this petition are that the petitioner No. 1 company is a public sector company having its registered office at 20, Community Centre, East of Kailash, New Delhi. Petitioner No. 2 is the managing director of petitioner No. 1 company. The petitioners are at present engaged in setting up a chemical fertilizer project at an investment of rupees 537 crores in tahsil Raghogarh, District Guna, M.P., about 4 km., from a village called Vijaypur. The site of the factory is forest land. The petitioners have obtained the land from the Forest Department of the State of M.P. With a view to minimise the cost of construction and erection of the factory, the petitioners avail the concessional rates of single point sales tax on production of C forms under the Central Sales Tax Act and for that purpose, the petitioner-company got itself registered as a dealer under the M.P. General Sales Tax Act, 1958. 4. The petitioners obtain material for construction and setting up the project by various modes, either through the railway freight or by transport also. Goods were purchased from outside the State through the railways and also within the State of M.P. In September/october, 1984, the respondent No. 2 demanded the payment of entry tax at the pain of stopping the goods in transit. The respondent No. 2 issued a notice under clause (3) of section 22-A of the M.P. General Sales Tax Act, 1958 vide annexure A, and raised a demand in the sum of Rs. 5 lacs an entry tax for the period July 1, 1984 to September 30, 1984 and October 1, 1984 to December 31, 1984. It is this notice, annexure A, which is sought to be challenged in this petition on the ground that all the goods were not brought for business but for construction of factory. The factory actually started production in 1987. It is this notice, annexure A, which is sought to be challenged in this petition on the ground that all the goods were not brought for business but for construction of factory. The factory actually started production in 1987. Hence, it is contended that the goods which were brought for purposes of construction and not for the purpose of business as such they cannot be subjected to entry tax and in this connection, reliance was placed on the decision given by this Court in the case of Maihar Cement v. Assistant Commissioner of Sales Tax [1985] 60 STC 210 wherein it has been held that the assessee purchased iron and steel during the years 1977 and 1978 for construction of buildings to start its business of manufacturing cement. The assessee's factory commenced production of cement only from 1980. But the assessing authority imposed entry tax on those purchases treating them as purchases in the course of business. The Assistant Commissioner in first appeal upheld the order of the assessing authority. On a writ petition, this Court held thus : "....the assessee was not liable to pay entry tax on the purchases of iron and steel prior to the commencement of its business of manufacturing cement. Therefore the orders of assessment were liable to be quashed and no penalty could also be imposed for the same reason." The same judgment was followed by this Court in the case of Maihar Cement v. Commissioner of Sales Tax, M.P. (1995) 28 VKN 185. 5. In the present case also, all the purchases were made for construction of factory and not for purposes of business. The factory commenced production at the end of 1987, and the period for assessment of July 1, 1984 to September 30, 1984 and October 1, 1984 to December 31, 1984, during which these goods were brought for construction of factory. Thus, the petitioners are not exigible to entry tax as the goods were purchased for construction purpose. In that view of the matter, order, annexure A, for demand of entry tax cannot be sustained. Annexure A is therefore quashed. The petition is accordingly allowed. There shall be no orders as to costs. Security amount if any be refunded to the petitioners. Petition allowed.