SITA RAM BISHAMBHER DAYAL & ORS. vs STATE OF U.P. & ORS.

The Supreme Court upheld the validity of Section 3D(1) of the U.P. Sales Tax Act, 1948, which allows the government to levy a purchase tax on goods, stating that the delegation of authority to fix tax rates is permissible if legislative policy and guidelines are provided. The Court found that the power delegated to the executive was not excessive and that the maximum tax rate was reasonable. Furthermore, the Court ruled that Section 3D(1) does not violate Article 14 of the Constitution, as it is lawful for the legislature to classify between licensed and unlicensed dealers based on their accounting obligations.