SHREE CEMENT LTD vs STATE OF RAJASTHAN

The Supreme Court held that the notifications issued by the State of Rajasthan under Section 8(5) of the Central Sales Tax Act, which reduced the sales tax rate for inter-State sales, were void and quashed based on the precedent set in Shree Digvijay Cement Co. vs. State of Rajasthan. The Court overruled its previous decisions in both Shree Digvijay Cement and India Cement & Ors. vs. State of Andhra Pradesh, establishing that the State cannot recover differential sales tax based on void notifications. The Court ultimately ruled in favor of the petitioners, preventing the recovery of the differential tax demanded by the show-cause notices.