MITHAN LAL vs THE STATE OF DELHI & ANOTHER(with connected petition)

The Supreme Court held that Parliament has the authority under Article 246(4) of the Constitution to impose a sales tax on the supply of materials in building contracts, validating the extension of the Bengal Finance (Sales Tax) Act, 1941, to Delhi via the Part C States (Laws) Act, 1950. The Court ruled that the imposition of tax on the petitioners was valid and that Section 2 of the Act does not violate Article 248(2) regarding delegation of legislative powers. The notification extending the Act to Delhi was deemed intra vires, and the earlier case of State of Madras v. Gannot Dunkerley and Co. was held inapplicable.