The Associated Cement Cos. Ltd vs State Of Madhya Pradesh & Anr

The Supreme Court held that the Municipal Council, Kymore, is bound by the Government Order dated 15.12.1995 under the Madhya Pradesh Municipalities Act, 1961, which fixed the export tax on cement at 0.20%. The Court established that the Municipal Council cannot impose a higher tax rate than that prescribed by the State Government, as the imposition of tax is subject to State approval. Consequently, the demand for payment of tax at the rate of 0.50% was declared invalid, and the appellant was only required to pay tax at the rate of 0.20%.