F.C.I. vs STATE OF HARYANA

The Supreme Court upheld the authority of the State of Haryana to impose sales-tax on levy transactions, affirming that such transactions fall within the purview of Entry 54 of List II of the Seventh Schedule to the Constitution. The Court dismissed the appellant's appeal and allowed the State's appeal, restoring the validity of the sales-tax demand. The judgment clarified that the earlier ruling of the Punjab & Haryana High Court was no longer applicable, establishing that states are competent to levy sales/purchase tax on these transactions under the Haryana General Sales Tax Act, 1973.