SC upholds states' power to levy additional tax on sales tax under pre-GST regime

NEW DELHI: The Supreme Court on Wednesday reaffirmed states’ power to impose an additional tax, surcharge or cess calculated on an existing sales tax, settling a legal question that had remained unresolved for nearly three decades. The ruling reaffirms the Supreme Court’s 1974 decision in S. The bench also held that there was no conflict between Kodar and the Supreme Court’s 1983 judgment in Hoechst Pharmaceuticals, which had upheld a similar surcharge on sales tax. Although the Supreme Court had upheld states’ power to impose additional levies on sales tax in Kodar and subsequent judgments, uncertainty emerged following its 1990 ruling in India Cements vs State of Tamil Nadu . In 1998, the Supreme Court referred the matter to a larger bench, citing an apparent conflict between earlier judgments, particularly Kodar (1974) and India Cements (1990). He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Stay updated with the latest Trending , India , World , CJP Protest in Delh LIVE and US news.