HOECHST PHARMACEUTICALS LTD. AND ANOTHER ETC. vs STATE OF BIHAR AND OTHERS

The Supreme Court upheld the constitutional validity of sub-section (3) of Section 5 of the Bihar Finance Act, 1981, which prohibits dealers from passing on the surcharge to consumers. The Court ruled that this provision does not conflict with Article 246(3) of the Constitution or violate Articles 14 and 19(1)(g). The Court emphasized that the classification of dealers based on gross turnover is valid and does not infringe upon their rights under the Essential Commodities Act.