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2009 (3) TMI 918 - GAUHATI HIGH COURTConstitutionality, legality and validity of the section 3(2)(b) of Arunachal Pradesh Goods Tax Act 2005 challenged which imposes tax on the entry of goods, other than non-taxable import, for consumption, use or sale thereof into the local area of the State of Arunachal Pradesh Held that:- the impugned levy, on import of goods into the State of Arunachal Pradesh, is violative of article 301 and also article 304 inasmuch as the levy is discriminatory in nature and cannot, under the Constitutional scheme be allowed to survive. Apart from the fact that the impugned Act does not facially indicate the quantifiable benefits provided or to be provided to a tax-payer, the averments, made in paragraphs 5 and 7 of the respondents' affidavit, clearly show that the impugned levy is not compensatory in nature; rather, it aims at raising general revenue collection of the State Hence, the impugned provisions must be held to be ultra vires. Consequently, the levy must be struck down. Appeal allowed.
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