COMMERCIAL TAX OFFICER vs SWASTIK ROADWAYS

The Supreme Court held that sections 57, 58, and 59 of the Madhya Pradesh Commercial Tax Act, 1994 were unconstitutional as they exceeded the legislative competence of the State Legislature under Entry 54 of List II of the Seventh Schedule of the Constitution of India. The Court affirmed the High Court's decision, which found that these provisions improperly treated clearing and forwarding agents as dealers and imposed penalties for tax evasion by their principals. The judgment referenced the precedent set in State of Haryana v. Sant Lal & Anr. [(1993) 4 SCC 380].