“Entry Tax Levy by States is not Anti- Constitutional” Said Supreme Court In a major blow to trade dealers and industries, Honorable Supreme Court on this Friday, 11th November 2016 had justified the state government Entry Tax Legislation.
Earlier trade and business representatives including corporates like Jindal, Reliance, Vedanta, SAIL, Hindalco and many others had challenged the constitutional validity of this Compensatory taxing law-Entry Tax saying it as discriminatory and unconstitutional on the part of importer.
While delivering its 911- pages judgement bench said “States are rightly justified in framing their fiscal legislations to ensure that the tax burden on the goods imported from other states and goods produced within the sates fall equally. Hence levying entry tax are well within the purview of Article 304 (a) of the constitution.
The Honourable Supreme Court nine bench Judges said “levy of entry tax will make the goods costlier which is not produced or manufactured locally but it will be not right to say that such taxes are discriminatory and unconstitutional”. Further the bench observed that, If , the tax laws are non discriminatory in nature then it is constitutionally valid as per Article 304(a) and such taxing laws may do not require to pass through the test and process as enumerated in Article 304 (b).