KANTI LAL BABULAL vs h. C. PATEL

The Supreme Court ruled that Section 12A(4) of the Bombay Sales Tax Act, 1946, is unconstitutional as it violates Article 19(1)(f) of the Constitution, which protects the right to trade. The Court held that the provision allowing forfeiture of tax collected by dealers without a proper inquiry is invalid, as it does not provide for adjudication or a fair hearing. Consequently, the appellants were entitled to a refund of the amounts collected as tax, and the burden was on the respondents to prove any forfeiture was justified.