Jaiprakash Associates Limited v. State of Madhya Pradesh and Others

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2018 Supreme(Online)(SC) 3407

SUPREME COURT
Dr. A. K. Sikri, Ashok Bhushan, JJ.
Jaiprakash Associates Limited v. State of Madhya Pradesh and Others

Table of Content
1. entry tax framework and compensatory tax theory. (Para 1 , 2 , 3)
2. challenges against entry tax based on compensatory taxation principles. (Para 4 , 5 , 6)
3. tax law compatibility with constitutional provisions. (Para 7 , 8 , 10)
4. referrals to other benches for unresolved issues. (Para 11 , 12 , 13)
5. court decision on interim orders and liberty for petitions. (Para 14 , 15 , 16 , 17)

1. Leave granted in the special leave petitions.

2. Having regard to the fact that the correctness of the ratio of the judgment of the Seven Judges' Bench of this Court in ' Automobile Transport (Rajasthan) Ltd. Etc. v. State of Rajasthan and Ors.' [ 1963 (1) SCR 491 ] and the theory of compensatory tax was questioned, the matter was referred to Nine Judges' Bench. The Nine Judges' Bench of this Court heard the matters and answered the reference in those cases, leading case being ' Jindal Stainless Ltd. and Anr. v. State of Haryana and Ors. ' [ 2016 (11) SCALE 1 ].

3. The Court, by majority, answered the reference in the following terms:
" 1. Taxes simpliciter are not within the contemplation of Part XIII of the Constitution of India . The word 'Free' used in Art.301 does not mean