Row Over States’ Goods Entry Tax; SC Sets Up 9-Judges Bench

New Delhi: The Supreme Court has decided to set up a nine-judge constitution bench to examine the validity of separate entry taxes on goods, mandated by statutes, by various state governments.

A three-judge bench headed by Chief Justice TS Thakur has taken note of the entry tax provisions of various states as some companies have challenged them on the ground that they are against the concept of free trade and commerce under Article 301 (Freedom of trade commerce and intercourse) of the Constitution.

“We accordingly direct that the papers shall be placed before the Chief Justice for constituting an appropriate Bench to hear the main appeals/petitions in the month of July 2016,” the bench, also comprising Justices R Banumathi and UU Lalit, said.

The apex court asked the counsel for other parties, including some states, to provide written notes to Salve who, in turn, would incorporate them in his compilation.

The bench asked senior advocate Harish Salve, who has been representing some companies in the matter, to file a “comprehensive” compilation of his submission on each one of the questions that have been referred for determination by the larger Bench.

“This would include suggestions which other counsel appearing in the connected matters may have to make including citing the decided cases relied upon by them or any additional facets that they may like to project in support of their cases,” it said.

The nine-judge bench would be revisiting two judgements passed by the apex court in 1960 and 1962 respectively on the issue.