JONNALA NARASIMHARAO & CO. & ORS. ETC. ETC. vs STATE OF ANDHRA PRADESH & ORS.

The Supreme Court held that the Andhra Pradesh General Sales Tax Amendment Act, 1970, specifically Sections 8 and 9, was valid and constitutional, thereby restoring the legal position prior to the Amendment. The Court ruled that the agents who had collected tax were liable to pay the same to the State, as the tax collection had become legal post-Amendment. The High Court's decision to strike down Section 9 was overturned, affirming that the classification between dealers who collected tax and those who did not was reasonable and aligned with the legislative intent to rectify previous judicial shortcomings.