Article 307 of the Costitution of India with Case law

Here is a detailed explanation of Article 307 of the Constitution of India along with relevant case law:

๐Ÿ‡ฎ๐Ÿ‡ณ Article 307 โ€“ Appointment of Authority for Carrying Out the Provisions of Articles 301 to 304

๐Ÿ”น Text of Article 307:

โ€œParliament may by law appoint such authority as it considers appropriate for carrying out the purposes of the provisions of this Part, and confer on the authority so appointed such powers and duties as it thinks necessary.โ€

๐Ÿ” Explanation:

โœ… Context:

Article 307 is located in Part XIII of the Constitution (Articles 301 to 307), which deals with Trade, Commerce and Intercourse within the Territory of India.

โœ… Purpose of Article 307:

AspectDescription
Authority CreationEmpowers Parliament to appoint an authority to ensure the free flow of trade and commerce within India.
Implementation RoleAssists in the enforcement and oversight of Articles 301 to 304, which ensure freedom of trade and reasonable restrictions by the State.
NatureEnabling provision โ€” does not itself create an authority, but permits Parliament to do so.

โš–๏ธ Relevant Articles in Context:

ArticleSubject
301Freedom of trade, commerce and intercourse throughout the territory of India
302Parliament's power to impose restrictions in the public interest
303Restrictions not to discriminate between States
304Power of States to impose reasonable restrictions
305Saving of existing laws and laws providing for State monopolies
306[Repealed]
307Appointment of authority to ensure above provisions are properly implemented

๐Ÿง‘โ€โš–๏ธ Relevant Case Law:

๐Ÿ”น Atiabari Tea Co. Ltd. v. State of Assam (1961)

Citation: AIR 1961 SC 232
Facts: Assam imposed a tax on transport of tea through the state.
Issue: Whether such a tax violated Article 301 (freedom of trade).
Held:

Supreme Court held that Article 301 is enforceable, and any obstruction to free trade is subject to judicial review.

Also observed that no authority had yet been appointed under Article 307 by Parliament.

Indicated that if such an authority had existed, certain disputes could have been resolved administratively rather than judicially.

๐Ÿ”น Automobile Transport (Rajasthan) Ltd. v. State of Rajasthan (1962)

Citation: AIR 1962 SC 1406
Held:

Reasonable regulatory measures (like levying fees for maintenance of roads) do not violate Article 301.

Again noted that Article 307 is an enabling provision, but no law had been enacted under it.

Reinforced the importance of possibly setting up an authority for trade freedom oversight.

๐Ÿ”น Jindal Stainless Ltd. v. State of Haryana (2016)

Citation: (2017) 12 SCC 1
Held:

Large Constitution Bench decision on entry tax and its validity under Article 301.

The Court re-emphasized that no authority has been appointed under Article 307, even decades after Constitution came into force.

The lack of such an authority leads to overburdening courts with inter-state trade disputes.

๐Ÿ“Œ Summary Table:

FeatureDetails
Article307
PurposeTo allow Parliament to appoint an authority for enforcing free trade provisions (Art. 301โ€“304)
TypeEnabling provision (not self-executing)
Who AppointsParliament by law
Judicial RemarksSC has repeatedly noted absence of such an authority as a gap
Case LawAtiabari Tea, Automobile Transport, Jindal Stainless

๐Ÿ“š Status Quo:

No authority has yet been established under Article 307 as of 2025.

Judiciary continues to resolve inter-State trade and commerce issues, which could have been handled in part by such an authority if Parliament had created one.

๐Ÿง  Conclusion:

Article 307 is a crucial but underutilized constitutional provision. It was intended to provide administrative oversight and enforcement of free trade provisions across India. In practice, its non-implementation has shifted the burden to the judiciary. Many judgments have urged Parliament to consider acting under Article 307 for better federal coordination and economic integration.

 

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