Freedom of Trade, Commerce & Intercourse (Articles 301–307) — KSLU Constitutional Law 2 Notes

Freedom of Trade, Commerce & Intercourse (Articles 301–307)

Article 301: “…trade, commerce and intercourse throughout the territory of India shall be free.”

Article 301 guarantees a single economic union; but the freedom is not absolute. A State may tax imported goods only if it taxes its own goods alike (no discrimination — Art. 304(a)), and may impose reasonable restrictions in the public interest with the President’s assent (Art. 304(b)). A purely compensatory charge — a toll for using a road or bridge — falls outside Art. 301 altogether.

Cases: Atiabari Tea Co. v. State of Assam (1961) — a tax that directly and immediately restricts trade offends Art. 301; Automobile Transport v. State of Rajasthan (1962) — the compensatory tax exception; Jindal Stainless v. State of Haryana (2016) — a nine-judge bench recast the doctrine.