STATE OF MADHYA PRADESH vs BHAILAL BHAI & ORS.

The Supreme Court held that the sales tax imposed on imported tobacco violated Article 301(a) of the Constitution as it impeded inter-state trade. The Court ruled that the tax was not saved under Article 304(a) since indigenous tobacco was not taxed similarly. The tax paid under a mistake of law was refundable under Section 72 of the Indian Contract Act, 1872, and the High Court had the jurisdiction to order repayment despite the appellant's claims of unreasonable delay in filing the petition.