GWALIOR RAYON SILK MFG. (WVG.) CO. LTD. vs THE ASSTT. COMMISSIONER OF SALES TAX & ORS.

The Supreme Court upheld the constitutional validity of Section 8(2)(b) of the Central Sales Tax Act, 1956, determining that it does not suffer from excessive delegation. The Court found that there is a clear legislative policy in the provision, which mandates that the Central Sales Tax rate cannot be less than the local sales tax rate for goods, ensuring that inter-State sales do not provide an advantage to unregistered dealers. The Court emphasized that the law's objective is to prevent tax evasion through inter-State trade, and it is impractical for Parliament to fix a maximum rate due to the variability of local sales tax across states.