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Which Article of the Constitution requires that a Bill of the kind described in Article 304(b), affecting trade or commerce within a State, may not be introduced or moved in the State Legislature without prior Presidential sanction?
Answer & Solution
Correct answer: B.
1. **Article 304** governs the power of a State Legislature to (i) impose a non-discriminatory tax on goods imported from other States or Union Territories, and (ii) impose reasonable restrictions in the public interest on the freedom of trade, commerce or intercourse within the State.
2. The proviso to Article 304(b) requires that **no Bill or amendment for such a law may be introduced or moved in the State Legislature without the previous sanction of the President**.
3. The ICSI text records that subsequent assent of the President is also sufficient (*State of Karnataka v. M/s Hansa Corpn., (1981) AIR SC 463*).
4. Article 301 is the freedom guarantee; Article 200 is a general assent provision; Article 254 deals with the Concurrent List, not trade restrictions.
_Source: ICSI CS Executive — Lesson 2, 'Power of the State Legislature' under Freedom of Trade, p. 68._
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