ANDHRA STEEL CORPORATION vs COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA

The Supreme Court held that Article 304(a) of the Constitution pertains to the similarity in quality and kind of goods, not their tax status. It found Section 5(4) of the Karnataka Sales Tax Act, concerning item 2 of Schedule IV prior to 1.4.1978, to be violative of Article 304(a). The Court upheld the High Court's decision to quash the show cause notice issued under Section 22(A) of the Act, confirming the constitutional validity challenge.