EPARI CHINNA KRISHNA MOORTHY, PROPRIETOR, EPARI CHINN vs STATE OF ORISSA(With Connected Petition)

The Supreme Court held that the retrospective operation of Section 2 of the Sales Tax Validation Act, 1961, which defined 'manufacturer' in a manner that negated previously granted exemptions under the Orissa Sales Tax Act, 1947, was unconstitutional. The Court found that this provision violated Article 14 by being discriminatory and imposed an unreasonable restriction on the petitioner’s fundamental right to carry on business under Article 19(1)(g). Consequently, the Court upheld the High Court's decision to allow the petitioner's claim for exemption from sales tax.