1998 (11) TMI 537 - SC - VAT and Sales Tax

Whether notification issued by the State of Rajasthan in exercise of power under section 8(5) of the Central Sales Tax Act, 1956 were violative of articles 301 and 303 of the Constitution? Held that - Having regard to the reasons for the issuance thereof now placed on an affidavit by the State of Rajasthan, the said judgment Shri Digvijay Cement Co. v. State of Rajasthan 1997 (3) TMI 516 - SUPREME COURT OF INDIA would, prima facie appear to be binding in so far as it upholds the second contention. Thus the said judgment requires to be considered by a larger Bench, particularly in regard to the second contention. We, therefore, direct that the papers and proceedings in these matters be placed before the honourable the Chief Justice of India for appropriate directions.

Summary

The Supreme Court of India reviewed a notification issued by the State of Rajasthan under section 8(5) of the Central Sales Tax Act, 1956. This notification was similar to earlier ones that were previously struck down for not being in the public interest and violating constitutional articles 301 and 303. The Court decided to refer the matter to a larger bench for further consideration.