COMMNR.OF SALES TAX, DELHI &ORS vs M/S.SHRI KRISHNA ENGG. CO.

The Supreme Court addressed the validity of Rule 8(4)(c) of the Delhi Sales Tax Rules, 1975, holding it ultra vires Section 4(2)(a)(v) of the Delhi Sales Tax Act, 1975. The Court established that the Sales Tax Department cannot refuse to issue sales tax forms to purchasing dealers based on their tax arrears, as this condition is not supported by the statutory provisions. Consequently, the Court quashed Rule 8(4)(c) and directed the issuance of the necessary forms to the appellants, thereby upholding their rights under the Act.