V. GURUVIAH NAIDU AND SONS ETC. vs STATE OF TAMIL NADU AND ANR. ETC.

The Supreme Court held that items 7(a) and 7(b) of the Second Schedule of the Madras General Sales Tax Act, 1959, are constitutionally valid. It clarified that item 7(a) pertains only to intra-state sales, thus not exceeding the State Legislature's competence, and that item 7(b) does not violate Article 304(a) as it does not discriminate against imported goods. The court emphasized that the tax on raw hides is levied at 3%, while dressed hides made from locally purchased raw hides are not taxed again, ensuring no fiscal barrier to inter-state trade is created.