In another setback to the Trinamool Congress government, the Calcutta High Court on Monday struck down the West Bengal Tax on Entry of Goods into Local Areas, Act, 2012 a legislation passed by the State government to levy one percent tax on the entry of certain goods into the State.

Around this time last year, The Singur Land Rehabilitation and Development Act 2011 met a similar fate in the Court.

“Justice Indira Banerjee struck down the legislation and described it as ultra vires. The Court has given a six-week stay on the implementation of its judgment so that the parties can move against the order,” Niladri Khara, an advocate who appeared on behalf of some companies challenging the legislation said. A number of companies had opposed the entry tax and filed a writ petition before the Calcutta High Court in November 2012.

The legislation was passed in the Assembly in March 2012, amidst protests by the Opposition members who described the Bill as “regressive” and one that would further lead to increase in prices of essential commodities.

The State government had claimed that the money collected by the tax would be used to set up a “dedicated fund” for building infrastructure and market capabilities to boost industry in the State.