K. S. VENKATARAMAN & CO. vs STATE OF MADRAS

The Supreme Court ruled that the provisions of the Madras General Sales Tax Act, 1939, empowering the State to assess indivisible works contracts were ultra vires, thus invalidating the assessments made under these provisions. The Court held that Section 18A of the Act did not bar the maintainability of a suit for recovery of taxes illegally levied, as the sales-tax authorities acted outside their jurisdiction. Consequently, the appellant's suit for refund was deemed maintainable and within the limitation period.