PONDICHERRY GENERATORS MANUFACTURERS ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) )

(2.) CHALLENGE in this batch of writ petitions is against the Notification dated 29.12.1997 issued by the Government of Pondicherry. Under such Notification, the Government of Pondicherry has purported to frame rules, viz., the Pondicherry Municipalities (Tax on Procurement of Goods) Rules, 1997 (hereinafter referred to as "the Rules"). Such rules have been framed in exercise of powers conferred by clause (d) of Sub Section (2) of Section 118 read with Section 440 of the Pondicherry Municipalities Act, 1973, (hereinafter referred to as "the Act").

(3.) THE latter contention relating to violation of Article 301 has engaged the attention of the Court not only in this case, but in several cases throughout the country. THE provisions contained in Article 301 and 304 being relevant are extracted hereunder: "Article 301: Freedom of trade, commerce and intercourse " Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free. Article 304 : Restrictions on trade, commerce and intercourse among States-- Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law:--