Supreme Court of India · 1973-12-21
STATE OF TAMIL NADU, ETC. vs SITALAKSHMI MILLS, ETC.
- Citation / case number
- SC 1969/60257
- Court
- Supreme Court of India
- Petitioner
- STATE OF TAMIL NADU, ETC.
- Respondent
- SITALAKSHMI MILLS, ETC.
- Bench
- RAY, A.N. (CJ),KHANNA, HANS RAJ,MATHEW, KUTTYIL KURIEN,ALAGIRISWAMI, A.,BHAGWATI, P.N.
Judgment text excerpt
The Supreme Court upheld Section 8(2)(b) of the Central Sales Tax Act, 1956, ruling it does not violate Articles 301 and 303(1) of the Constitution. The Court established that preventing tax evasion serves the public interest, allowing Parliament to impose restrictions on interstate trade. Furthermore, the existence of varying tax rates across states does not constitute discrimination under Article 303(1), as trade flow is influenced by multiple factors beyond tax rates.