Supreme Court says Surcharge Computed on Tax Payable Is Within State Legislative Competence

The Supreme Court held that a surcharge computed as a percentage of sales tax payable does not become an impermissible tax on tax. It is an enhancement of the sales tax levy and falls within the State's legislative competence under the erstwhile Entry 54 of List II, in accordance with S. Kodar. The Court found no surviving conflict requiring reconsideration by a Seven-Judge Bench, but left the individual appeals and certain distinct issues open.