Entry Tax, Whether Ultra Vires/ Unconstitutional? Present Legal Status

from: http://www.gstaxindia.com/high-court-decisions/entry-tax-in-different-states-in-india-part-6-rajasthan/#comment-4233


Entry Tax in different states in India - Part 6 - Rajasthan

The Rajasthan High Court [Jodhpur Bench], while delivering the judgement in Dinesh Pouches Ltd vs State of Rajasthan & Others, held that the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 is unconstitutional and invalid.

The High Court held that the Act was not compensatory as no special services were provided to those from whom the tax was collected. The Act was held to impede interstate trade and commerce. The prior assent of the President was not obtained as required by Article 304(b) of the Constitution.

Date of decision: 21st August 2007


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Rishabh Sancheti Advocate Rajasthan High Court on August 8th, 2009 at 1:39 am

The present status can be summarized as under:

1. While a division bench of the Rajasthan High Court has held the Act to be ultra vires / unconstitutional, two other division benches, had held it to be intra vires.

2. Ergo, the matter has been referred to a three judge bench, and is pending consideration as on date.

3. The matter is also pending consideration of a larger bench of the Supreme Court of India, as it has framed specific questions for reference in its order dated December 17th, 2009 in Jaiprakash Associates Case.

Rishabh Sancheti
Advocate

European Master in Law and Economics.
Erasmus Mundus Scholar.
LL.M., Universität Hamburg.
Diploma di Master Universitario di I livello in Law and Economics, Universita Degli Studi Di Bologna.
LL.M., Universität Wien.
B.B.A.-LL.B. (Honors) (Cum Laude), National Law University, India.