Supreme Court of India · 1962-08-28
THE CEMENT MARKETING CO., OF INDIALTD. AND ANOTHER vs THE STATE OF MYSORE AND ANOTHER
- Citation / case number
- SC 1961/40
- Court
- Supreme Court of India
- Petitioner
- THE CEMENT MARKETING CO., OF INDIALTD. AND ANOTHER
- Respondent
- THE STATE OF MYSORE AND ANOTHER
- Author
- DAS, S.K.,KAPURL.,SARKAR, A.K.,HIDAYATULLAH, M.,DAYAL, RAGHUBAR
- Bench
- DAS, S.K.,KAPUR, J.L.,SARKAR, A.K.,HIDAYATULLAH, M.,DAYAL, RAGHUBAR
Judgment text excerpt
The Supreme Court held that the sales of cement, which were delivered in the State of Mysore but originated from factories outside the state, constituted inter-State sales under Article 286(2) of the Constitution of India. The Court ruled that the imposition of sales tax on these transactions was unconstitutional, as the movement of goods across state borders was integral to the sales process. The judgment followed the precedent set in M/S. Mohan Lai Hargobind v. The State of Madhya Pradesh, [1955] 2 S.C.R. 509, and distinguished Rohtas Industries Ltd. v. The State of Bihar, [1961] 12 S.T.C. 615.