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Entry Tax not Violative of Freedom of Trade and Commerce, says Supreme Court

In a setback to business entities, the Supreme Court on Friday upheld the entry tax on goods coming into a state

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Income tax (Representational Image), Pixabay

New Delhi, November 11, 2016: In a setback to business entities, the Supreme Court on Friday upheld the entry tax on goods coming into a state, holding that it was not in violation of the freedom of trade and commerce guaranteed under Article 301 of the Constitution and free trade does not mean “free from tax”.

By a majority verdict of 7:2, the Supreme Court held that “States are well within their right to design their fiscal legislations to ensure that the tax burden on goods imported from other States and goods produced within the State fall equally. Such measures if taken, would not contravene Article 304 (a) of the Constitution.”

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“Only such taxes as (which) are discriminatory in nature are prohibited by Article 304(a). It follows that levy of a non-discriminatory tax would not constitute an infraction of Article 301”, the judgment said.

While majority verdict was by 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 in separate judgments dissented from the majority view.

The majority judgment said that “Article 304 (a) frowns upon discrimination (of a hostile nature in the protectionist sense) and not on mere differentiation. Therefore, incentives, set-offs etc. granted to a specified class of dealers for a limited period of time in a non-hostile fashion with a view to developing economically backward areas would not violate Article 304(a).”

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Having said this, the majority judgment said that even though goods on which entry tax is being imposed are not being produced in the taxing State, yet a “tax on entry of goods into a local area for use, sale or consumption therein is permissible although similar goods are not produced within the taxing state.”

However, the court left open the question to be decided at a later stage whether “the entire State can be notified as a local area and whether entry tax can be levied on goods entering the landmass of India from another country …”

The case is rooted in the challenge to the constitutional validity of the laws enacted by the 14 States providing for levy of a tax on the “entry of goods into local areas comprising the States”.

The challenge to these laws was on the grounds of their being violative of the constitutionally recognised right to free trade and commerce guaranteed under Article 301 of the Constitution.

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Haryana law – Haryana Local Development Act, 2000 – providing for the entry tax was assailed by the Jindal Stainless Ltd.

The High Courts of Assam, Arunachal Pradesh, Jharkhand, Kerala and Tamil Nadu struck down the levies imposed by their respective States on the ground that they were discriminatory in nature hence violative of Article 304(a) of the Constitution.

When these States approached the apex court challenging the decision of the High courts, the two judges’ bench referred the same to a Constitution Bench for an authoritative pronouncement on as many as ten questions framed by them. (IANS)

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Mercy for the Nirbhaya Rapists?

Gender discrimination is the root of many evils. While keeping the aspiration of females down, certain males have committed many wrongs in the past.

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Nirbhaya
The Nirbhaya incident in Delhi was “instrumental” in bringing about a kind of gender awareness renaissance in India.

By Salil Gewali

Gender discrimination is the root of many evils. While keeping the aspiration of females down, certain males have committed many wrongs in the past. Apart from various kinds of physical tortures, the mental tortures undergone by defenseless females are endless. Within the confinement of four-walls innumerable sins are still being committed which mostly go unreported. However, it was Nirbhaya’s rape incident in Delhi that was “instrumental” in bringing about a kind of gender awareness renaissance in India. Post-Nirbhaya incident, a lot many changes in the laws have been made. The safety and security of women have been prioritized, the nation-wide the whole police departments have been sensitized, to a greater extent the road transportation has been made women-friendly.

Nirbhaya rape
The public is right and more sensible now to point out the “hard cruelty” with which the gang had sexually tortured Nirbhaya that night.

Thanks to the countless number of protests across the country condemning the six rapists. The people from all walks of life came together and relentlessly pressurized the government that the Nirbhaya convicts must be awarded capital punishment. Media’s contribution in the campaign is immeasurable. Alas, India’s judiciary is so annoyingly slow it has taken over 7 years to pronounce the death sentence.

Nirbhaya rape
Advocate Indira Jaising suggested that the convicts of Nirbhaya rape case could be “forgiven” by the parents.

However, now nothing could be so mind-blowing than the flood of condemnation against the comments by a veteran advocate and social activist Indira Jaising. Without a sense of guilt and potential backlash, she suggested that the convicts be “forgiven” by the parents. Jaising’s idea has clearly touched a raw nerve of the major population in the country. People’s anger is spilled well over social media. What is most noteworthy is the scathing condemnation directly from the horse mouth — the mother Asha Devi. A very bold lady, who determinedly fought for justice for so many years, thunders – “Who is Indira Jaising to give me such a suggestion? The whole country wants the convicts to be executed. Just because of people like her, justice is not done with rape victims,” Asha Devi aptly further adds — “Can’t believe how Jaising even dared to suggest such this; I met her many times over the years in Supreme Court, “not once” she asked for my well-being and today she is speaking for convicts. Such people earn a livelihood by supporting rapists; hence rape incidents don’t stop,”

The latter comments by the Nirbhaya’s mother clearly hint the doubt at the “integrity” of the advocate Ms. Jaising. How on earth that one who has not spoken a word of sympathy in spite of many encounters in the court can reserves the right to suggest that which offends the distressed victim party. Asha Devi deserves a salute for her boldness. Yes, India Jaising is one of the advocates who knocked the door of the Chief Justice of India in the middle of the night in July 2015 in order to seek the mercy for the dreaded terrorist Yakub Menon.

Nirbhaya rapists
In 2015, the Delhi Government proposed to award the Nirbhaya juvenile convicts with Rs 10000/- and a sewing machine.

Again, here is another bombshell to drop which many of us may have forgotten. Can we ever “forgive” for the shocking proposal in 2015 by Delhi Government to award the Nirbhaya juvenile convicts with Rs 10000/- and a sewing machine?  Who has approved such bizarre ideas and which leaders are responsible? What kind of lesson should the citizens take from this?

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I think the public is right and more sensible now to point out the “hard cruelty” with which the gang had sexually tortured Nirbhaya that night. They had used the iron-rod to inflict deep injuries upon the girl which is unspeakable, which is very unpardonable. So, given the increasing cases of rapes and subsequent inhumane cruelty and cold-blooded killings, Capital punishment can be the only answer and “one of the deterrents”. Before the divine retribution, the hard rod of punishment should not be spared at all. 

Salil Gewali is a well-known writer and author of ‘Great minds on India’. Twitter: @SGewali