B. SHAMA RAO vs THE UNION TERRITORY OF PONDICHERRY

The Supreme Court held that the Pondicherry General Sales Tax Act (10 of 1965) was void and could not be revived by the Amendment Act of 1966. The Court found that the Pondicherry Legislature effectively surrendered its legislative power to the Madras Legislature by adopting the Madras General Sales Tax Act as it stood at the time of passing the principal Act. Consequently, the Act was deemed 'still-born' as it could not anticipate future amendments to the Madras Act, leading to a total delegation of legislative authority which was unconstitutional.