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2006 (10) TMI 395 - HC - VAT and Sales TaxLevy of Entry Tax - Seeks to challenge the provisions of the Gujarat Tax on Entry of Specified Goods into Local Areas (Entry Tax Act) - violative of articles 301 and 304 of the Constitution of India - transportation and travel services to passengers in the State of Gujarat - HELD THAT:- On a fair reading of the provisions of article 304(a) and 304(b), if the levy of tax is found to be non-discriminatory, in that case, previous sanction of the President is not required. If the contention on behalf of the petitioner is accepted, then there is no purpose in enacting article 304(a) and 304(b) separately. If the argument is correct then what is mentioned in article 304(b) could have been mentioned in article 304(a) itself and both would not have been worded separately. Under the circumstances, the contention on behalf of the petitioner, that even if the levy of tax is found to be non-discriminatory in that case too it is to be established that the same is in the public interest and that it requires previous sanction of the President, cannot be accepted. Considering the various provisions of the Statement of Objects, settled legal provision and facts stated hereinabove, it cannot be said that the provisions of the Act and the levy of the entry tax on the specified goods are violative of article 304 of the Constitution of India. We hold that, levy of entry tax is neither discriminatory between the goods so imported and goods so manufactured or produced in a local areas and the challenge to the constitutional validity of the Gujarat Tax on Entry of Specified Goods into Local Areas Act, 2001 (Entry Tax Act) and the levy of entry tax therefore fails. The petition deserves dismissal and it is accordingly dismissed. Rule is discharged. However, there shall be no order as to costs.
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