Larsen And Toubro Ltd., Mumbai vs State Of Bihar And Ors.

The Supreme Court addressed the legality of tax demands made under the Bihar Finance Act and the Central Sales Tax Act against M/s Larsen & Toubro Ltd., emphasizing the need for proper assessment procedures and adherence to statutory provisions. The Court held that the demands were illegal as they did not consider the Inter-State sales and failed to provide adequate opportunity for hearing, thus violating principles of natural justice. The judgment reinforced the necessity for compliance with Section 21(1) of the Bihar Finance Act, which requires follow-up legislation and rules for effective implementation.