A nine-judge constitutional bench of the Supreme Court will on Thursday hear the plea of leading companies against the entry tax levied by states.
Senior advocate Harish Salve is leading a batch of petitions for oil companies, which have challenged the tax.
The Supreme Court had earlier shrugged off the Attorney General’s suggestion that entry tax imposed by states no longer needs a debate as the Goods and Services Tax (GST) Bill will subsume it.
“There is no need for this. A detailed GST Bill has been introduced. Once it is ratified by all the states and is implemented, entry 52 (dealing with entry tax) will be abolished,” the Attorney General told the bench.
However, Chief Justice T.S. Thakur brushed aside the argument and the bench pointed out that there were 15,000 entry tax related cases pending in various high courts at present.
Entry tax, imposed on inter-state transport of various goods and commodities, has been a major issue of contention between manufacturers, companies and dealers on one side and the states on the other.