In a major embarrassment for the Bengal Government, the Calcutta High Court on Monday ruled unconstitutional a law passed by it to impose entry tax on goods coming to the State.
Hard pressed for cash, the State Government had in 2012-2013 brought the new law leading to a suit filed by a number of top industry houses who pleaded with the State Government that the Act was opposed to Article 301 of the Constitution and violated the right to do business without hindrance in any part of the country.
The petitioners also claimed that the State did not get the Presidential assent on the new Act. The court termed the law ultravires of the Constitution.
The State had earned `1,200 crore last fiscal in the wake of the new Act.