State Of Rajasthan And Anr vs Rajasthan Chemist Association

The Supreme Court upheld the Rajasthan High Court's decision that Section 4A of the Rajasthan Sales Tax Act, 1994, as amended by the State Finance Act, 2004, is unconstitutional to the extent it levies tax on the Minimum Retail Price (MRP) of goods rather than the actual sale price. The Court emphasized that tax should be based on the actual transaction value rather than an artificial amount, aligning with Entry 54 of the Second List of the Seventh Schedule of the Constitution. Consequently, the appeal was dismissed, affirming the High Court's ruling.