D. CAWASJI AND CO. MYSORE vs THE STATE OF MYSORE AND ANR.

The Supreme Court upheld the validity of the Mysore Sales Tax (Amendment) Act, 1969, which enhanced the sales tax rate on Arrack to 45% with retrospective effect from April 1, 1969. The Court clarified that sales tax could be collected on the total selling price, including excise duty, contrary to the High Court's ruling. The judgment established that the State has the authority to amend tax laws retrospectively to avoid financial liabilities, affirming the constitutionality of the amendment under the Mysore Sales Tax Act, 1957.