Atiabari Tea Co. v State of Assam (1961)

Constitutional Law II · Freedom of Trade

Facts.

Assam taxed tea and jute being carried through the State (largely en route to Calcutta). Atiabari challenged the tax as a barrier to the free movement of goods.

Issue.

Does a tax on the mere carriage/movement of goods violate the freedom under Article 301?

Held.

Yes. A tax that directly and immediately restricts the movement of trade offends Article 301 and is invalid unless saved by the article’s own limits.

Why it matters.

It set the first test for Article 301 and opened the way for the compensatory-tax refinement in Automobile Transport.

📄 Full Constitutional Law II notes + Question Bank (₹199) — every topic in depth, model answers to all past exam questions, in one printable PDF. Get the bundle · All landmark cases · All Constitutional Law II topics