INTERNATIONAL TOURIST CORPORATION ETC. ETC. vs STATE OF HARYANA & ORS.ANDMANMOHAN VIG & ORS.v.STATE OF HAR

The Supreme Court upheld the Haryana Passengers and Goods Taxation Act, 1952, stating that Section 3(3) does not violate Article 301 of the Constitution as it falls within the State's legislative competence under Entry 56 of List II. The Court emphasized that the residuary power of Parliament cannot encroach upon State legislation unless legislative incompetence is clearly established. The judgment clarified that taxes imposed under Entry 56 are regulatory and compensatory in nature, and the interpretation of legislative entries must favor State autonomy.