THE TOWN MUNICIPAL COMMITTEE, AMRAVATI vs RAMCHANDRA VASUDEO CHIMOTE AND ANOTHER

The Supreme Court held that the newly imposed terminal taxes on silver, gold, and precious stones by the Amravati Municipality were invalid as they had never been lawfully levied prior to the Constitution's commencement, thus failing to meet the requirements of Article 277 of the Constitution. The Court clarified that Article 277 does not grant unlimited legislative power to impose new taxes, even if they are of the same nature as those previously existing. The appeal against the High Court's decision to quash the tax was dismissed, affirming the High Court's ruling.