https://www.taxtmi.com/caselaws?id=251221 A compensatory entry tax must satisfy the principle of equivalence by showing a quantifiable, measurable and broadly proportional benefit to the tax-paying class. Where the levy is justified only by general developmental spending on roads, bridges, infrastructure, electricity and water supply, without material showing reimbursement or special facilities for the payers, the required direct correlation is absent. On that basis, section 3 of the Jharkhand Entry Tax on Consumption or Use of Goods Act, 2011 was treated as unconstitutional, not saved by article 304, and contrary to article 301. en-us Tue, 03 Apr 2012 00:00:00 +0530 Mon, 08 Sep 2014 09:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=251221 A compensatory entry tax must satisfy the principle of equivalence by showing a quantifiable, measurable and broadly proportional benefit to the tax-paying class. Where the levy is justified only by general developmental spending on roads, bridges, infrastructure, electricity and water supply, without material showing reimbursement or special facilities for the payers, the required direct correlation is absent. On that basis, section 3 of the Jharkhand Entry Tax on Consumption or Use of Goods Act, 2011 was treated as unconstitutional, not saved by article 304, and contrary to article 301. Case-Laws VAT and Sales Tax Tue, 03 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=251221