https://www.taxtmi.com/caselaws?id=163348 The HC determined that the Haryana Local Area Development Tax Act, 2000, failed to qualify as a compensatory tax, as it did not offer specific, measurable benefits to taxpayers. The tax was primarily for general revenue, thus restricting trade and commerce, violating Article 301 of the Constitution. The judgment stressed the necessity for a direct correlation between tax collection and taxpayer benefits, consistent with the principles established in Jindal Stainless Ltd. v. State of Haryana. Consequently, the Act was deemed unconstitutional, as it imposed unreasonable restrictions on the freedom of trade and commerce. en-us Wed, 14 Mar 2007 00:00:00 +0530 Tue, 09 Apr 2024 17:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163348 The HC determined that the Haryana Local Area Development Tax Act, 2000, failed to qualify as a compensatory tax, as it did not offer specific, measurable benefits to taxpayers. The tax was primarily for general revenue, thus restricting trade and commerce, violating Article 301 of the Constitution. The judgment stressed the necessity for a direct correlation between tax collection and taxpayer benefits, consistent with the principles established in Jindal Stainless Ltd. v. State of Haryana. Consequently, the Act was deemed unconstitutional, as it imposed unreasonable restrictions on the freedom of trade and commerce. Case-Laws VAT and Sales Tax Wed, 14 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163348