Poppatlal Shah v. State of Madras (1952) : A Landmark case on Sales Tax Law
Written by HT AL-AMIN KHAN , Student, Department of Land Management and Law, Jagannath University, Dhaka. Case name: Poppatlal Shah v. State of Madras (1952) Citation: AIR 1952 Mad 91. Introduction This is a landmark case on sales tax law that was decided by the Supreme Court of India in 1953. The case is Poppatlal Shah v. State of Madras, which involved a dispute between a merchant firm and the provincial government over the liability to pay sales tax on goods sold outside the province. Facts Poppatlal Shah was a partner of a firm called Indo-Malayan Trading Company, which had its head office in Madras (now Chennai). The firm dealt with groundnut oil, sago and kirana articles, and received orders from merchants in Calcutta (now Kolkata) for supply of these goods. The firm purchased these goods from local markets in Madras and dispatched them to Calcutta by rail or steamer. The railway receipts or bills of lading were taken in the name of the sellers and so were the insur