A nine-judge Bench of the Supreme Court on Tuesday commenced hearing on the validity of separate entry taxes on goods mandated by various State government statutes, without heeding to the plea of the Centre to wait for the passage of GST Bill in Parliament.
The Constitution Bench led by Chief Justice T.S. Thakur refused to put the hearing on hold when Attorney General Mukul Rohatgi pleaded that they should wait till the fate of the pending GST (Goods and Services Tax) Bill is known.
The Bench, also comprising Justices A.K. Sikri, S.A. Bobde, Shiva Kirti Singh, N.V. Ramana, R. Banumathi, A.M. Khanwilkar, D.Y. Chandrachud and Ashok Bhushan, decided to go ahead with the hearing, saying that “complex tax issues are involved.”
It said issues related to past levies by the States would be decided in the matter.
The Attorney General submitted that some arrangement could be made in respect to past demands by the States relating to entry tax after the GST Bill, involving a Constitution amendment, was passed by Parliament.
Entry tax is imposed by the State governments on movement of goods from one State to another. It is levied by the State that receives goods.
