Interpretation of entry 97 i.e. residual entry in list I :
Entry 97 in list I (Union List) reads as follows, ‘Any other matter not mentioned in List II or List III including any tax not mentioned in either of those lists’.
Eminent jurist Seervai has observed, ‘The law laid down in Kesavananda Bharti v. State of Kerala (1973) 4 SCC 225 = AIR 1973 SC 1461 (Constitution Bench) is that if a subject of legislation was prominently present to the minds of framers of our Constitution, they would not have left it to be found by Courts in residuary power, a fortiori, if a subject of legislative power was not only present to the minds of framers but was expressly denied to Parliament, it cannot be located in residuary power of Parliament – quoted with approval in State of West Bengal v. Kesoram Industries Ltd. AIR 2005 SC 1646 = (2004) 10 SCC 201 = 266 ITR 721 = 2004 AIR SCW 5998 (SC 5 member Constitution bench 4 v. 1 judgment). In this case, it was observed that if any power to tax is clearly mentioned in List II, the same would not be available to be exercised by Parliament based on the assumption of residuary power.
Entry 97 in List I was included to meet some unexpected and unforeseen contingencies – Kesavananda Bharti v. State of Kerala (1973) 4 SCC 225 = AIR 1973 SC 1461 (Constitution Bench).