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SC notice to Bihar on plea against entry tax on Railways

The Supreme Court sought the Bihar government`s response to a plea to restrain it from recovering entry tax of Rs 23.65 crores from the Railways for years 2010-11 and 2011-12 under a separate state law.



New Delhi: The Supreme Court on Friday sought the Bihar government`s response to a plea to restrain it from recovering entry tax of Rs 23.65 crores from the Railways for years 2010-11 and 2011-12 under a separate state law.

The Centre has contended that state government lacks the legislative competence to enact the law for levying entry tax as it violates the freedom of trade, commerce and intercourse guaranteed under the Constitution.

A bench of justices DK Jain and Madan B Lokur issued notices to the state government and its Department of Commercial Taxes on a petition by Indian Railways questioning the enforcement of Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Act of 1993.

New Delhi: The Supreme Court on Friday sought the Bihar government`s response to a plea to restrain it from recovering entry tax of Rs 23.65 crores from the Railways for years 2010-11 and 2011-12 under a separate state law.

The Centre has contended that state government lacks the legislative competence to enact the law for levying entry tax as it violates the freedom of trade, commerce and intercourse guaranteed under the Constitution.

A bench of justices DK Jain and Madan B Lokur issued notices to the state government and its Department of Commercial Taxes on a petition by Indian Railways questioning the enforcement of Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Act of 1993.

Appearing for the Centre, Additional Solicitor General (ASG) Mohan Jain and counsel A Ramesh submitted that the high court "erroneously" disposed of its writ petition without deciding whether the Railways comes within the ambit of the Act of 1993.

PTI

From Zee News

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