ITS DIRECTOR SHRI PRADEEP KUMAR AGRAWAL vs GOVERNMENT OF N.C.T. OF DELHI THROUGH

Bench: 4 — Indira Banerjee, Surya Kant, M.M. Sundresh, Sudhanshu Dhulia

In Brief

The Supreme Court addressed conflicting decisions on whether goods covered by the Additional Duties of Excise Act 1957 (such as tobacco-based products like pan masala and gutka) could be taxed by states. The Court found no actual conflict between the Kothari Products and Agra Belting Works lines of cases, as they dealt with distinct legal questions. More significantly, the Court clarified the doctrine of precedent: a Bench's strength (quorum) determines whether it binds subsequent Benches, not the numerical count of individual judges. A larger Bench's decision binds smaller or equal Benches; only a co-equal Bench can doubt a precedent, potentially referring it to a larger Bench.

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Sales Tax Taxation Constitutional Law Judicial Precedent Bench Strength Stare Decisis Excise Duties Inter-State Trade

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