SC upholds states' power to levy additional sales tax under 1974 ruling

The Supreme Court on Wednesday held that a 1974 Constitution Bench ruling upholding states' power to impose additional sales tax or surcharge calculated as a percentage of the existing sales tax continues to hold the field, saying a reference on the issue had become academic. A seven-judge Constitution bench headed by Chief Justice of India Surya Kant unanimously held that the legal question referred to it nearly 27 years ago no longer required adjudication, as the statutory provisions under challenge had since been replaced or amended and the Goods and Services Tax (GST) law had come into force. "The question referred to is of no practical significance and now academic. Consequently, the question referred to does not survive for adjudication by a seven-judge Bench, and the reference has to be answered accordingly," the CJI, who wrote the judgment on behalf of himself and five other judges, said. The bench also comprised Justices K V Viswanathan, S V N Bhatti, Joymalya Bagchi, N V .