https://www.taxtmi.com/caselaws?id=40377 The SC struck down the Haryana Local Area Development Tax Act, 2000 as violative of Article 301 and held it not saved by Article 304. The Court clarified distinctions among tax, fee and compensatory tax, finding compensatory levies are hybrid but akin to fees, based on reimbursement for special benefits; if such a levy directly and immediately impedes trade and commerce it breaches Article 301. The Court endorsed the direct-effect test from earlier precedents and rejected the "some connection" test as bad law. Pending local enactment challenges will be listed for disposal in light of this ruling. en-us Thu, 13 Apr 2006 00:00:00 +0530 Fri, 19 Sep 2025 12:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40377 The SC struck down the Haryana Local Area Development Tax Act, 2000 as violative of Article 301 and held it not saved by Article 304. The Court clarified distinctions among tax, fee and compensatory tax, finding compensatory levies are hybrid but akin to fees, based on reimbursement for special benefits; if such a levy directly and immediately impedes trade and commerce it breaches Article 301. The Court endorsed the direct-effect test from earlier precedents and rejected the "some connection" test as bad law. Pending local enactment challenges will be listed for disposal in light of this ruling. Case-Laws VAT / Sales Tax Thu, 13 Apr 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40377