SHREE DIGVIJAY CEMENT CO. vs STATE OF RAJASTHAN .

The Supreme Court addressed the validity of the Rajasthan government's notification dated 12th March 1997 under Section 8(5) of the Central Sales Tax Act, which reduced the sales tax on inter-state cement sales to 4% and eliminated the requirement for Form-C and Form-D declarations. The Court held that such a reduction adversely affected local sales in Gujarat, violating the constitutional provisions in Part XIII, and reaffirmed its earlier decision in Shri Digvijay Cement Co. v. State of Rajasthan [(1994) 5 SCC 406], which quashed similar notifications. Consequently, the Court ruled the notification of 12th March 1997 as unconstitutional and invalid.