APPELLATE ASSTT. COMMR. ETC. ETC. vs L.M.S. SADAK TAMBY & CO., ETC. ETC.

The Supreme Court upheld Section 2(1) of the Madras Act 37 of 1964, which levies tax on the first sale of tanned hides and skins, clarifying that the tax is based on the purchase price of raw hides and skins, irrespective of whether they were purchased inside or outside the State. The Court ruled that this provision does not contravene Article 286 of the Constitution, as it does not discriminate against sellers based on the origin of the raw materials. The judgment confirmed that the tax is on the sale of tanned hides and skins, not on the purchase of raw hides and skins.