In Brief
OCL India Ltd. and other industrial companies challenged state laws imposing entry tax on goods entering their industrial townships. They argued that industrial areas excluded from municipal jurisdiction under Article 243-Q cannot be "local areas" for taxation purposes. The Supreme Court upheld the entry tax levies, holding that despite exclusion from municipal law requirements, industrial townships remain "local areas" under Entry 52 of the constitutional scheme. The Court distinguished the landmark Diamond Sugar Mills case, which concerned factory premises alone, and clarified that Article 243-Q exclusions relate only to democratic governance requirements, not taxation authority.
The lawyer headnote and full judgment text are available to registered users.