1980 (7) TMI 232 - SC - VAT and Sales Tax

Whether section 8(2)(b) of the Central Sales Tax Act 1956 is unconstitutional and void as violating article 301 of the Constitution? Held that - Allow these appeals set aside the judgment of the Madras High Court and direct that the sales which form the subject-matter of dispute in these appeals are taxable at the rate of seven per cent under section 8(2)(b) of the Central Sales Tax Act 1956 which does not offend articles 301 and 303(1) of the Constitution and is valid.

Summary

The Supreme Court allowed the appeals, set aside the judgment of the Madras High Court, and directed that the disputed sales are taxable at seven per cent under section 8(2)(b) of the Central Sales Tax Act, 1956. The State is entitled to recover costs from the respondents.