Judgment

SINHA C.J.I. : (on behalf of himself and Gajendragadkar, Wanchoo and Shah JJ.) The main question, on this reference by the President of India Art. 143 (1) of the Constitution, depends upon the true scope and interpretation of Art. 289 of the Constitution relating to the immunity of States from Union taxation. On receipt of the reference notices were issued to the Attorney-General of India and to the Advocates General of the States. In pursuance of that the case of the Union Government has been placed before us by the learned Solicitor-General and that of the States of Andhra Pradesh, Assam, Bihar, Gujarat, Kerala, Madhya Pradesh, Madras, Maharashtra, Mysore Orissa, Punjab and West Bengal was presented to us by their respective counsel on the date the hearing of this case started, an application was made on behalf of the State of Uttar Pradesh also to be heard, but no statement of case had been put in on behalf of that State, and as no grounds were made out for condoning the delay, we refused the application.

2. The reference is in these terms:

"Whereas sub-section (1) of S. 20 of the Sea Customs Act, 1878 (Act 8 of 1878), provides for the levy of customs duties on goods impor