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1990 (3) TMI 315 - SC - VAT and Sales TaxWhether tax imposed under sub-sections (2), (2A) and (5) of section 8 of the Central Sales Tax Act on inter-State sales do not amount to law giving or authorising the giving of any preference to one State over the other on the ground of varying rates of tax prevailing in different States? Held that:- Appeal allowed. The provision which is impugned in this case is ultra vires and accordingly set aside the judgment of the High Court and allow the writ petition filed by the assessee in the High Court. So long the rates applicable are in accordance with the section 8 no discrimination would arise and none of the provisions of Part XIII of the Constitution could be said to have been offended. But the case on hand is not one arising out of the Central Act. The tax was levied under the State Act in respect of steel semis. The State Act exempted steel semis which have been manufactured out of iron scrap which have suffered tax but not the other categories where the scrap had not suffered tax at that stage.
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