M.P. V. SUNDARARAMIER & CO. vs THE STATE OF ANDHRA PRADESH& ANOTHER(with connected petiti

The Supreme Court ruled that the Sales Tax Laws Validation Act, 1956, which sought to validate state taxes on inter-State sales, was unconstitutional to the extent it contravened Article 286(2) of the Constitution, which prohibits such taxation. The Court held that the imposition of tax on inter-State sales, where property in goods passed outside the taxing state, was invalid. Consequently, the petitioners were not liable for the tax demanded by the State of Andhra for sales made prior to the Supreme Court's ruling in The Bengal Immunity Company Limited case.