BUXA DOOARS TEA COMPANY LTD. ETC. vs STATE OF WEST BENGAL AND OTHERS

The Supreme Court examined the constitutional validity of the West Bengal Rural Employment and Production Act, 1976, specifically Sections 4(2)(aa) and 4(4), which imposed a rural employment cess on tea estates. The Court held that if a tax on goods directly impedes the movement of goods across India, it violates Article 301; however, if the impact is indirect, it does not. The Court concluded that the levy was valid under Article 304(b) as it was introduced with the President's sanction, thus upholding the Act's constitutionality.