Constitutional challenge to CST notification referred for larger Bench reconsideration on free trade and equality issues.

A notification issued under section 8(5) of the Central Sales Tax Act, 1956, and challenged as violating Articles 301 and 303 of the Constitution, was considered substantially similar to earlier notifications already struck down by a three-Judge Bench. The Court noted that the earlier decision appeared prima facie binding on the constitutional challenge, but the material placed on affidavit raised a question warranting reconsideration by a larger Bench. The papers and proceedings were directed to be placed before the Chief Justice of India for appropriate directions on further hearing.

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Issues: Whether the impugned notification issued under section 8(5) of the Central Sales Tax Act, 1956, and challenged on the ground of violation of Articles 301 and 303 of the Constitution of India, should be examined by a larger Bench in view of the earlier decision striking down similar notifications.

Analysis: The notification was stated to be substantially similar to earlier notifications already struck down by a three-Judge Bench. The Court recorded that the earlier judgment prima facie appeared binding on the second contention and, having regard to the material now placed on affidavit, considered that the matter required consideration by a larger Bench, particularly on the constitutional issue.

Outcome: The papers and proceedings were directed to be placed before the Chief Justice of India for appropriate directions.

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