https://www.taxtmi.com/caselaws?id=163348 The levy under the Haryana Local Area Development Tax Act, 2000 was not compensatory because the scheme did not show a quantifiable, measurable benefit to the payer broadly commensurate with the tax collected. Although the proceeds were stated to fund local infrastructure and civic services, the Act did not earmark any direct or exclusive facility for the traders, and the State failed to establish a sufficient nexus between the tax and the trading facilities claimed. The levy was therefore treated as a restriction on the free flow of trade and commerce, hit by Article 301 of the Constitution, and invalid. 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 levy under the Haryana Local Area Development Tax Act, 2000 was not compensatory because the scheme did not show a quantifiable, measurable benefit to the payer broadly commensurate with the tax collected. Although the proceeds were stated to fund local infrastructure and civic services, the Act did not earmark any direct or exclusive facility for the traders, and the State failed to establish a sufficient nexus between the tax and the trading facilities claimed. The levy was therefore treated as a restriction on the free flow of trade and commerce, hit by Article 301 of the Constitution, and invalid. Case-Laws VAT and Sales Tax Wed, 14 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163348