Q. Consider the following statements with regard to inter-state trade and commerce in India:
Which of the above statements is/are correct?
Q. Consider the following statements with regard to inter-state trade and commerce in India:
Which of the above statements is/are correct?
The correct option is
D
Neither 1 nor 2
Explanation:
Statement 1 is incorrect: By virtue of Article 302, the Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in the public interest. However, it is to be remembered that it cannot give a preference to one state over another or discriminate between the states except in the case of scarcity of goods in any part of India
Statement 2 is incorrect: Article 304 of the Constitution authorizes all the State legislatures to impose any tax on goods imported from other states and the union territories. But this tax must be the same as to which similar goods manufactured in that state are subject. Thus, it prohibits the imposition of discriminatory taxes by the state
The correct option is
D
Neither 1 nor 2
Explanation:
Statement 1 is incorrect: By virtue of Article 302, the Parliament can impose restrictions on the freedom of trade, commerce and intercourse between the states or within a state in the public interest. However, it is to be remembered that it cannot give a preference to one state over another or discriminate between the states except in the case of scarcity of goods in any part of India
Statement 2 is incorrect: Article 304 of the Constitution authorizes all the State legislatures to impose any tax on goods imported from other states and the union territories. But this tax must be the same as to which similar goods manufactured in that state are subject. Thus, it prohibits the imposition of discriminatory taxes by the state
