CJI Thakur advises Govt: Don't make Tax a barrier to free Trade and Commerce in Country

August,5,2016:

"Once it operates as a barrier, it stops being a tax. It becomes an obstruction and offensive," says T.S. Thakur.

Supreme Court after passing of the GST Bill in the Parliament observed that Indian Constitution does not provide tax as a barrier to free movement of trade and commerce.

Chief Justice of India T.S. Thakur expounded that, "If Tax starts operating as a barrier to trade and commerce it stops being a Tax, it simply becomes an obstruction".

‘Movement without restriction’

CJI T.S Thakur further elucidated that, its basically the Freedom of Trade and Commerce that allows trader to move from one place to another within a country without any restrictions and obstructions.

CJI Thakur added that,"Traders also have to move constantly and as long as their fundamental right is protected under Article 19, there is should not be any question of a fiscal restriction being as an obstruction".

‘Complex tax issues involved’

The Apex Court Bench, which also comprised of Justice A.M. Khanwilkar, Justice D.Y. Chandrachud , Justice Ashok Bhushan, Justice A.K. Sikri, Justice S.A. Bobde, Justice Shiva Kirti Singh, Justice N.V. Ramana, Justice R. Banumathi, , thus decided to go ahead with the hearing, stating that “complex tax issues are involved.”

Supreme Court Bench said that, "Issues were related to the past levies by the States would be decided in this matter".

The Attorney-General Rohtagi further submitted that some arrangement can be made in respect to the past demands of the States relating to the entry tax which is imposed by the State Governments on the movement of goods form one State to another after GST Bill, which involves a Constitutional Amendment, which was passed by the Parliament.