STATE OF U.P. vs JAI PRAKASH ASSOCIATES LTD.

The Supreme Court examined whether the Uttar Pradesh government's notification granting tax rebates under Section 5 of the Uttar Pradesh Trade Tax Act, 1948, discriminated against goods manufactured outside the state, violating Articles 301 and 304(a) of the Constitution. The Court held that the notification's provisions, which favored local manufacturers using fly-ash, did not constitute discrimination as they aimed to promote environmental sustainability. The appeals were dismissed, affirming the validity of the notification and the government's intent to encourage the use of fly-ash in cement production.