The Supreme Court upheld on Friday the constitutional validity of the state legislations with regard to levy of entry tax on goods coming into its territory.
A 7:2 majority verdict by the apex court ruled that the tax legislation by the state does not require the consent of the President under Article 304 B of the Constitution.
The nine-judge bench headed by chief justice TS Thakur said though state governments are empowered to impose tax on goods coming from other states there cannot be a discrimination between the goods.
The apex court further said if a state imposes entry tax on products made within the state it was not empowered to impose higher tax on the identical products entering from other states.
The majority view also left it for the smaller regular bench to adjudicate upon the term 'local area' whether it would refer to the entire state or some pockets within its territory.
Besides the CJI, the majority view was held by justices AK Sikri, SA Bobde, SK Singh, NV Ramanna, R Banumathi and AM Khanwilkar.
Justice DY Chandrachud and justice Ashok Bhushan delivered the separate minority judgement.
Justice Banumathi, who shared the minority view also read out, a separate verdict expressing her disagreement on some of the points by saying that in her opinion the term 'local area' implied the entire territory of the state.