V. M. SYED MOHAMMAD AND COMPANY vs THE STATE OF ANDHRA.(With Connected Appeal)

The Supreme Court held that the Madras General Sales Tax Act (IX of 1939) is not ultra vires the Government of India Act, 1935, as entry 48 in List II of the Seventh Schedule permits taxation on both purchasers and sellers. The Court ruled that Article 14 does not prohibit legislative classification based on reasonable differentia, thus the Act's specific targeting of certain commodities does not violate constitutional provisions. However, Rule 16(5) was found to contravene Section 5(vi) of the Act but is severable, leaving the rest of the Act valid.