STATE OF RAJASTHAN vs M/S. D.P. METALS

The Supreme Court upheld the Rajasthan High Court's decision declaring Section 78(5) of the Rajasthan Sales Tax Act, 1994 unconstitutional, finding it ultra vires the legislative competence of the State and violative of Articles 14, 19(1)(g), 301, and 304 of the Constitution. The Court emphasized that the imposition of penalties under this provision was excessive, arbitrary, and unreasonable, thus infringing on the rights of the dealers. The judgment reinforces the principle that legislative provisions must not only be within competence but also reasonable and just.