STATE OF BIHAR vs BIHAR CHAMBER OF COMMERCE

The Supreme Court upheld the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Act, 1993, stating that the tax is compensatory in nature and does not violate Article 301 of the Constitution. The Court clarified that the provisions of the Act, including Section 3 and Section 6, do not confer unguided powers upon the State Government, thus rejecting the High Court's ruling that declared the Act void. The Court emphasized that the tax is a legitimate exercise of the State's power to regulate trade and commerce within its territory.