In Brief
The Supreme Court dismissed large consolidated appeals and special leave petitions concerning entry tax levied by various States on goods entering local areas. Referencing the Nine-Judge Constitution Bench judgment in Jindal Stainless Ltd. v. State of Haryana, the Court clarified that only discriminatory taxes violate Article 304(a)—not mere differentiation. The compensatory tax theory was rejected. The Court held that entry tax on goods for consumption within a local area is permissible, and non-hostile incentives to specified manufacturers do not violate Article 304(a). The Court disposed the petitions with liberty to file fresh petitions with proper factual foundation in the High Courts to address remaining issues concerning local area definitions and imports from abroad.
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