KURAPATI VENKATASATYANARAYANA & OTHERS vs THE STATE OF ANDHRA PRADESH

The Supreme Court held that under Article 285(1)(a) of the Constitution, the burden of proof does not lie on the dealer to demonstrate actual consumption of goods in the delivery State. The Court found that the sales made from January 26, 1960, to March 31, 1960, were not liable to sales tax, thus rendering the tax levy illegal. Furthermore, the Court ruled that the assessment order could be severed, allowing for the legal and illegal parts to be distinguished, rather than invalidating the entire assessment.