JINDAL STAINLESS LTD. vs STATE OF HARYANA .

The Supreme Court addressed the constitutional validity of the Haryana Local Area Development Tax Act, 2000, determining that it violates Article 301 of the Constitution and is not saved by Article 304. The Court examined the concept of 'compensatory tax' and its parameters, concluding that the Act's imposition of entry tax on goods entering local areas constitutes an unconstitutional levy. The Court held that the Act cannot impose sales tax on inter-State sales, thereby ruling in favor of the appellants, including Jindal Strips Ltd.