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1996 (2) TMI 430 - SC - VAT and Sales TaxWhether the impugned tax has been established to be compensatory in nature or whether it can be called a regulatory measure. In case the impugned tax is not established to be compensatory-or as a measure of regulation-whether it is saved by virtue of the provision contained in article 304(b) read with article 255 of the Constitution? Whether the Bihar Legislature is deprived of its legislative competence to enact the impugned Act on account of the enactment of ADE Act and/or because the State of Bihar is getting a portion of the taxes levied and collected under the ADE Act? Whether the impugned enactment is outside the purview of entry 52 in List II of the Seventh Schedule to the Constitution and, therefore, beyond the legislative competence of the Bihar Legislature for the reason that it does not provide for the revenues raised thereunder to be passed on to the local authorities for being used for the purposes of the respective local areas? Whether the proviso to section 3(1) and section 6 are void for the reasons assigned by the High Court? Held that:- Appeal allowed and the judgment of the High Court is set aside.
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