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SC to examine if entry tax violates constitutional guarantee freedom of trade

Posted Date : 18-Jul-2016 , 07:40:59 am | Posted By CASANSAAR print Print
A nine judge constitution bench of the Supreme Court bench will hear from Tuesday a batch of petitions by some top corporate houses and business associations challenging the imposition of entry tax by the various state governments, contending that it was violative of the freedom of trade and commerce provided under the Constitution. 

The bench of Chief Justice T.S.Thakur, Justice A.K.Sikri, Justice S.A. Bobde, Justice Shiva Kirti Singh, Justice N.V. Ramana, Justice R. Banumathi, Justice A.M. Khanwilkar, Justice D.Y. Chandrachud and Justice Ashok Bhushan will examine whether entry tax being imposed by the various states was in breach of Article 301 providing for freedom of trade, commerce and intercourse within the country. 

The top court is seized of about 2,000 petitions by manufacturers and their associations who have challenged the constitutional validity of entry tax laws enacted by the different States. 

The entire issue of entry tax that is under challenge through these petitions involve financial implications of about Rs 30,000 crore - a huge sum for the cash-strapped states like Odisha which would be getting something like Rs 1,600 crore from the tax. 

The top court was first moved by Jindal Stainless Ltd way back in 2002 when the company had challenged the validity of the Haryana Local Area Development Tax Act, 2000. 

It had challenged the validity of act on the grounds that it was violative of Article 301 since it imposed restrictions on trade and is not protected by Article 304. (PTI - Economic Times)
 
 
 

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