Declaring that the state governments have the legislative competence, the Supreme Court Friday held as constitutional the levy of entry tax by states on goods imported from other states. A nine-judge bench led by Chief Justice of India T S Thakur held by majority that state governments could impose taxes on good imported from other states even if similar goods are manufactured within its territory.

The bench laid down certain tests, including test of economical development and reasonableness, to adjudge validity of a particular law framed by a state.

It held that a state government has authority under entry 52 of list 2 to design its fiscal policy and that the only check would be that it does not disturb the federal structure nor is violative of any other constitutional provision. #casansaar (Indian Express)