STATE OF MADRAS vs R.NAND LAL & CO.

The Supreme Court ruled that Rule 10(1) of the Central Sales Tax (Madras) Rules, 1957, which mandates separate declarations for each transaction, does not apply to purchasing dealers in Punjab when the selling dealer is in Madras. The Court held that the State of Madras lacks the authority under Sections 13(3) and 13(4)(e) of the Central Sales Tax Act, 1956, to impose such restrictions on outside dealers. Consequently, the appellants were entitled to be taxed at the lower rate of one percent under Section 8(1) of the Central Sales Tax Act instead of seven percent.