Steel Authority Of India Ltd vs State Of Orissa & Ors. Etc. Etc

The Supreme Court upheld the High Court's decision to strike down Section 13AA of the Orissa Sales Tax Act, which mandated a two percent deduction from payments to contractors without considering whether the transaction was liable for sales tax. The Court found that the provision was unconstitutional as it conferred arbitrary powers on the deducting authority and failed to provide a mechanism for contractors to contest the deduction. The ruling emphasized the need for a fair process in tax deductions, reinforcing principles of non-discrimination and due process under Article 14 of the Constitution.