ASHOKA MARKETING LTD. vs STATE OF BIHAR AND ANR.

The Supreme Court held that subsections (3), (4), and (5) of Section 20-A of the Bihar Sales Tax Act, 1959, are ultra vires the State Legislature, as they enable the State to collect tax that it is not entitled to levy. The Court rejected the argument that these provisions were incidental to the power to levy sales tax under Entry 54 of List II of the Seventh Schedule. The appeal was allowed, and the High Court's decision was overturned, declaring subsections (6) and (7) invalid as well.