KARAM CHAND THAPAR & BROS. (COAL SALES)LIMITED vs STATE OF .UTTAR PRADESH AND ANOTHER

The Supreme Court interpreted Section 9(1) of the Central Sales Tax Act, 1956, holding that the tax on inter-State sales is levied by the Government of India and collected in the originating State. The Court clarified that an order of rectification under Section 22 of the U.P. Sales Tax Act, 1948, is valid if passed within three years of the original order, even if served beyond that period. The judgment established that the limitation period for rectification does not bar the authority from making corrections if the application is timely, thus upholding the rectification order.