M/S. ANAND COMMERICAL AGENCIES, M/S. ANAND COMMERICAL AGENC vs THE COMMERICAL TAX OFFICER,VI CIRCLE, HYDERABAD & ORS. ETC.

The Supreme Court addressed the constitutional validity of the tax levied on groundnut oil imported from Karnataka into Andhra Pradesh under the Andhra Pradesh General Sales Tax Act. The Court held that the differential tax rate, which imposed a higher tax on imported oil compared to locally manufactured oil, was discriminatory and violated the right to freedom of trade and commerce under Article 19(1)(g) of the Constitution. Consequently, the Court ruled in favor of the appellant, M/s. Anand Commercial Agencies, and set aside the lower court's decision.