STATE OF A.P. vs NATIONAL THERMAL POWER CORPN. LTD .

The Supreme Court ruled that the levy of duty on the sales of electrical energy by the National Thermal Power Corporation Ltd. (NTPCL) under the Andhra Pradesh Electricity Duty Act, 1939 is unconstitutional as it exceeds the legislative powers of the State. The Court held that the duty imposed on inter-State sales of electricity is not permissible under Article 286 of the Constitution, which prohibits such taxation. Consequently, the tax collected was deemed unauthorized and liable for refund, affirming the High Court's decision.