ASSOCIATED CEMENT COS. LTD. vs STATE OF MADHYA PRADESH

The Supreme Court ruled 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 differential tax at 0.50% was set aside, affirming the Single Judge's decision in favor of the appellant.