M/S. GEO MILLER & CO P. LTD vs STATE OF M P

The Supreme Court upheld the constitutionality of the M.P. Entry Tax Act, 1976, ruling that it does not violate Article 301 of the Constitution as it does not impose direct restrictions on the free flow of trade. The Court clarified that only taxes that immediately impede trade fall under Article 301's prohibition, and established that compensatory taxes are permissible. The appellants' argument that the Entry Tax was unconstitutional due to non-compliance with Article 304(b) was rejected, affirming the validity of the tax assessment against them.