DAMODAR VALLEY CORPORATION vs STATE OF BIHAR & ORS.

The Supreme Court held that Article 288(2) of the Constitution requires that any law imposing a tax must receive the President's assent and provide for his prior consent for rules related to tax rates. The Court clarified that provisions dealing with the mode of payment do not need separate assent if the main tax provisions have been approved. The appeal was dismissed, affirming the High Court's decision that the Bihar Electricity Duty Act, 1948, as amended, validly imposed duty on the Damodar Valley Corporation, thus rejecting the appellant's claim of immunity from tax under Article 288(1).