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TMI Blog2017 (3) TMI 1960X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. 7606/2017 (Arising out of SLP (C) No. 14829/2008), Civil Appeal No. 7609/2017 (Arising out of SLP (C) No. 14875/2008), Civil Appeal No. 7612/2017 (Arising out of SLP (C) No. 15047/2008), Civil Appeal No. 7615/2017 (Arising out of SLP (C) No. 15078/2008), Civil Appeal No. 7617/2017 (Arising out of SLP (C) No. 15090/2008), Civil Appeal No. 7622/2017 (Arising out of SLP (C) No. 15253/2008), Civil Appeal No. 7625/2017 (Arising out of SLP (C) No. 15273/2008), Civil Appeal No. 7627/2017 (Arising out of SLP (C) No. 15274/2008), Civil Appeal Nos. 7629-7630/2017 (Arising out of SLP (C) Nos. 15286-15287/2008), Civil Appeal Nos. 7632-7633 (Arising out of SLP (C) Nos. 15288-15289/2008), Civil Appeal No. 7636/2017 (Arising out of SLP (C) No. 15324/2008), Civil Appeal No. 7638/2017 (Arising out of SLP (C) No. 15325/2008), Civil Appeal No. 7640/2017 (Arising out of SLP (C) No. 15326/2008), Civil Appeal No. 7642/2017 (Arising out of SLP (C) No. 15327/2008), Civil Appeal No. 7645/2017 (Arising out of SLP (C) No. 15328/2008), Civil Appeal No. 7646/2017 (Arising out of SLP (C) No. 15329/2008), Civil Appeal No. 7648/2017 (Arising out of SLP (C) No. 15330/2008), Civil Appeal No. 7649/2017 (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 (Arising out of SLP (C) No. 21127/2008), Civil Appeal No. 7751/2017 (Arising out of SLP (C) No. 21506/2008), Civil Appeal No. 7752/2017 (Arising out of SLP (C) No. 21509/2008), Civil Appeal No. 7753/2017 (Arising out of SLP (C) No. 21510/2008), Civil Appeal No. 7755/2017 (Arising out of SLP (C) No. 22342/2008), Civil Appeal No. 7757/2017 (Arising out of SLP (C) No. 23383/2008), Civil Appeal No. 7759/2017 (Arising out of SLP (C) No. 25378/2008), Civil Appeal No. 7760/2017 (Arising out of SLP (C) No. 25498/2008), Civil Appeal No. 7763/2017 (Arising out of SLP (C) No. 26571/2008), Civil Appeal No. 7765/2017 (Arising out of SLP (C) No. 26572/2008), Civil Appeal No. 7767/2017 (Arising out of SLP (C) No. 26972/2008), Civil Appeal No. 7769/2017 (Arising out of SLP (C) No. 27606/2008), Civil Appeal No. 7772/2017 (Arising out of SLP (C) No. 27927/2008), Civil Appeal Nos. 7775-7784/2017 (Arising out of SLP (C) Nos. 29561-29570/2008), Civil Appeal No. 7785/2017 (Arising out of SLP (C) No. 30533/2008), Civil Appeal No. 7786/2017 (Arising out of SLP (C) No. 30542/2008), Civil Appeal No. 7841/2017 (Arising out of SLP (C) No. 5371/2009), Civil Appeal No. 7842/2017 (Arising out of SLP (C) No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing out of SLP (C) No. 6693/2009), Civil Appeal No. 7882/2017 (Arising out of SLP (C) No. 6694/2009), Civil Appeal No. 7883/2017 (Arising out of SLP (C) No. 6696/2009), Civil Appeal No. 7884/2017 (Arising out of SLP (C) No. 6698/2009), Civil Appeal No. 7885/2017 (Arising out of SLP (C) No. 6699/2009), Civil Appeal No. 7886/2017 (Arising out of SLP (C) No. 6700/2009), Civil Appeal No. 7887/2017 (Arising out of SLP (C) No. 6701/2009), Civil Appeal No. 7888/2017 (Arising out of SLP (C) No. 6702/2009), Civil Appeal No. 7889/2017 (Arising out of SLP (C) No. 6703/2009), Civil Appeal No. 7890/2017 (Arising out of SLP (C) No. 6704/2009), Civil Appeal No. 7891/2017 (Arising out of SLP (C) No. 6705/2009), Civil Appeal No. 7903/2017 (Arising out of SLP (C) No. 6708/2009), Civil Appeal No. 7904/2017 (Arising out of SLP (C) No. 6709/2009), Civil Appeal No. 7905/2017 (Arising out of SLP (C) No. 6710/2009), Civil Appeal No. 7908/2017 (Arising out of SLP (C) No. 6711/2009), Civil Appeal No. 7909/2017 (Arising out of SLP (C) No. 6712/2009), Civil Appeal No. 7910/2017 (Arising out of SLP (C) No. 6713/2009), Civil Appeal Nos. 7912-7913/2017 (Arising out of SLP (C) Nos. 6714-6715/2009), Civil Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and answered the reference in those cases, leading case being 'Jindal Stainless Ltd. and Anr. v. State of Haryana and Ors.' [2016 (11) SCALE 1]. The Court, by majority, answered the reference in the following terms: 1. Taxes simpliciter are not within the contemplation of Part XIII of the Constitution of India. The word 'Free' used in Article 301 does not mean "free from taxation". 2. Only such taxes as 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. 3. Clauses (a) and (b) of Article 304 have to be read disjunctively. 4. A levy that violates 304(a) cannot be saved even if the procedure under Article 304(b) or the proviso there under is satisfied. 5. The compensatory tax theory evolved in Automobile Transport case and subsequently modified in Jindal's case has no juristic basis and is therefore rejected. 6. Decisions of this Court in Atiabari, Automobile Transport and Jindal cases (supra) and all other judgments that follow these pronouncements are to be extent of such reliance overruled. 7. A tax on entry of goods into a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . State of Haryana and Ors.' [2006 (7) SCC 241]. 4. Jindal Strips Ltd. is an industry manufacturing products within the State of Haryana. The raw-material is purchased from outside the State. The finished products are sent to other States on consignment basis or stock transfer basis. No sales tax is paid on the input of the raw material. Similarly, no sales tax is paid on the export of finished products. 5. The impugned Act came into force w.e.f. 5th May, 2000, to provide for levy and collection of tax on the entry of goods into the local areas of the State for consumption or use therein. The Act is enacted to provide for levy and collection of tax on the entry into a local area of the State, of a motor vehicle for use or sale, and of other goods for use or consumption therein. The Act seeks to impose entry tax on all goods brought into a "local area". The entire State is divided into local areas. The Act covers not only vehicles bringing goods into the State but also vehicles carrying goods from one local area to another. However, those who pay sales tax to the State are exempt from payment of entry tax. Ultimately, the entry tax only falls on concerns, like Jindal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be levied on the goods which are directly imported from other countries and brought in a particular State?. (3) In some statutes enacted by certain States, there was a provision for giving adjustment of other taxes like VAT, incentives etc. paid by the indigenous manufacturers and it was contended by the Assessees that whether the benefits given to certain categories of manufacturers would amount to discrimination Under Section (sic Article) 304. 10. The Nine Judges' Bench while answering the reference deemed it appropriate to leave these questions to be agitated before the regular Bench. That is how these matters are posted before this Bench and it is agreed that the aforesaid issues are the main issues to be decided. 11. During the hearing of arguments, counsel for both sides submitted that since the main challenge in the writ petitions, which were filed by the writ Petitioners before the High Court, was predicated on the law laid down by the Constitution Bench in 'Atiabari Tea Co. Ltd. (supra), the High Court essentially confined its discussion only on "compensatory tax theory", as propounded in the aforesaid judgment so the High Courts looked at the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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