Case Law Details
Bharat International Vs Assistant Commissioner of Commercial Tax & Ors. (Supreme Court of India)
Introduction: The Supreme Court of India recently rendered a significant decision by dismissing an appeal filed by M/s Bharat International against the Assistant Commissioner of Commercial Tax & Ors. This case centered around the imposition of entry tax and is closely tied to a precedent set by the Supreme Court in the matter of Jindal Stainless Limited and Anr. vs. State of Haryana and Ors. in 2017.
Detailed Analysis: The crux of the matter lies in the constitutional validity of state government legislations imposing entry tax on goods entering their territories. The nine-judge Bench, led by the then Chief Justice of India, upheld the constitutional validity of such legislations, emphasizing that entry tax does not violate the constitutionally recognized right to free trade and commerce under Article 301 of the Constitution of India.
The bench clarified that taxes, in general, are not within the contemplation of Part XIII of the Constitution, and the word ‘Free’ in Article 301 does not imply freedom from taxation. Only discriminatory taxes are prohibited under Article 304(a). Therefore, the imposition of a non-discriminatory tax, such as entry tax, does not infringe upon Article 301.
The present appeal by Bharat International contested an order dated 12.10.2009 from the High Court of Madhya Pradesh (Indore Bench). The appellant’s counsel argued that the issues in the appeal align with the judgment in Jindal Stainless Limited. The Supreme Court, having limited the consideration to the question of entry tax, acknowledged the alignment and dismissed the appeal.
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