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PART XIII
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TRADE, COMMERCE AND INTERCOURSE WITHIN THE
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TERRITORY OF INDIA
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301. Freedom of trade, commerce and intercourse.—Subject to the
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other provisions of this Part, trade, commerce and intercourse throughout the
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territory of India shall be free.
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302. Power of Parliament to impose restrictions on trade, commerce
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and intercourse.—Parliament may by law impose such restrictions on the
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freedom of trade, commerce or intercourse between one State and another or
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within any part of the territory of India as may be required in the public
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interest.
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303. Restrictions on the legislative powers of the Union and of the
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States with regard to trade and commerce.—(1) Notwithstanding anything
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in article 302, neither Parliament nor the Legislature of a State shall have pow
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er
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to make any law giving, or authorising the giving of, any preference to one
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State over another, or making, or authorising the making of, any discrimination
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between one State and another, by virtue of any entry relating to trade and
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commerce in any of the Lists in the Seventh Schedule.
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(2) Nothing in clause (1) shall prevent Parliament from making any law
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giving, or authorising the giving of, any preference or making, or authorising
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the making of, any discrimination if it is declared by such law that it is
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necessary to do so for the purpose of dealing with a situation arising from
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scarcity of goods in any part of the territory of India.
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304. Restrictions on trade, commerce and intercourse among
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States.—Notwithstanding anything in article 301 or article 303, the
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Legislature of a State may by law—
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(a) impose on goods imported from other States any tax to which similar goods ma
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nufactured or produced in
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that State are subject, so, however, as not to discriminate between goods
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so imported and goods so manufactured or produced; and
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(b) impose such reasonable restrictions on the freedom of trade,
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commerce or intercourse with or within that State as may be required in
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the public interest:
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Provided that no Bill or amendment for the purposes of clause (b) shall
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be introduced or moved in the Legislature of a State without the previous
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sanction of the President.
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148
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149
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THE CONSTITUTION OF INDIA
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2015-04-23 07:29:53 +00:00
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305. Saving of existing laws and laws providing for State
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monopolies.—Nothing in articles 301 and 303 shall affect the provisions of
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any existing law except in so far as the President may by order otherwise
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direct; and nothing in article 301 shall affect the operation of any law made
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before the commencement of the Constitution (Fourth Amendment) Act, 1955,
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in so far as it relates to, or prevent Parliament or the Legislature of a State
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from
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making any law relating to, any such matter as is referred to in sub-clause (ii)
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of clause (6) of article 19.
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2015-04-23 07:29:52 +00:00
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306. Power of certain States in Part B of the First Schedule to impose
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restrictions on trade and commerce.-
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Notwithstanding anything in the foregoing pro-
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visions of this Part or in any other pro-
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visions of this Constitution, any State
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specified in Part B of the First Schedule
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which before the commencement of this
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Constitution was levying any tax or duty
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on the import of goods into the State from other States
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or on the export of goods from the State to other States
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may, if an agreement in that behalf has been entered into
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between the Government of India and the Government of
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that State, continue to levy and collect such tax or duty
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subject to the terms of such agreement and for such period
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not exceeding ten years from the commencement of this
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Constitution as may be specified in the agreement :
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Provided that the President may at any time after the
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expiration of five years from such commencement terminate
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or modify any such agreement if, after consideration of
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the report of the Finance Commission constituted under
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article 280, he thinks it necessary to do so.
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307. Appointment of authority for carrying out the purposes of
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articles 301 to 304.—Parliament may by law appoint such authority as it
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considers appropriate for carrying out the purposes of articles 301, 302, 303
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and 304, and confer on the authority so appointed such powers and such duties
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as it thinks necessary.
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