Jindal Stainless Ltd. & Anr vs State Of Haryana & Ors

The Supreme Court examined the constitutional validity of the Haryana Local Area Development Tax Act, 2000, specifically regarding its compliance with Article 301 and the exceptions under Article 304. The Court held that the Act, which imposes an entry tax on goods entering local areas, does not violate Article 301 as it is a compensatory tax aimed at local development. The referral to the Constitution Bench was made to clarify the parameters of compensatory tax in relation to inter-State sales and the legislative competence of the State Legislature under the Central Sales Tax Act, 1956.