Constitutional validity of CST section 8(2)(b) upheld, leaving inter-State match sales taxable at seven per cent.

Section 8(2)(b) of the Central Sales Tax Act, 1956 was treated as constitutionally valid because the Supreme Court had already upheld it in earlier proceedings, finding no violation of articles 301 or 303(1) of the Constitution. In light of that binding position, the contrary view of the High Court could not stand. The disputed inter-State sales of matches therefore remained taxable at seven per cent under section 8(2)(b).

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Issues: Whether section 8(2)(b) of the Central Sales Tax Act, 1956, was unconstitutional and void for violating article 301 of the Constitution, and whether inter-State sales of matches were taxable at seven per cent under that provision.

Analysis: The validity of section 8(2)(b) had already been upheld by the Court in earlier proceedings, where it was held that the provision did not offend articles 301 and 303(1) of the Constitution. In view of that binding , the contrary view taken by the High Court could not be sustained.

Conclusion: Section 8(2)(b) of the Central Sales Tax Act, 1956, was held valid and the disputed sales remained taxable at seven per cent under that provision.

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