Commercial Tax Officer & Ors vs Swastik Roadways & Anr

The Supreme Court addressed the constitutionality of sections 57, 58, and 59 of the Madhya Pradesh Commercial Tax Act, 1994, which were struck down by the High Court for lacking legislative competence under Entry 54 of List II of the Seventh Schedule of the Constitution. The Court upheld the High Court's ruling, affirming that the provisions improperly treated clearing and forwarding agents as dealers, imposing penalties for tax evasion by their principals. The judgment reinforced the principle that only those directly involved in the sale and purchase of goods can be taxed under the Act.