MESSRS ASHOK LEYLAND LTD. vs THE STATE OF MADRAS

The Supreme Court held that the Sales Tax Laws Validation Act, 1956, liberated state laws from the restrictions of Article 286(2) of the Constitution, allowing the Madras General Sales Tax Act, 1939, to impose tax on inter-State sales. The Court ruled that the transactions in question were taxable under Section 2(h) of the Madras General Sales Tax Act, 1939, and that the assessment made was valid despite the appellant's claims of inter-State trade. The appeal was dismissed, affirming the High Court's decision.