M/S INDIAN OIL CORPORATION LIMITED vs THE STATE OF UTTAR PRADESH

The Supreme Court addressed the issue of liability to pay interest on Entry Tax under The U.P. Tax on Entry of Goods into Local Areas Act, 2007. The Court reiterated that the Entry Tax legislation must comply with Articles 301 and 304 of the Constitution, which guarantee freedom of trade and commerce. The judgment upheld the previous rulings that questioned the legislative competence of the State to impose such taxes, thereby reinforcing the constitutional protections against restrictive trade practices.