Composite Tax Order Not Fully Invalid if Partly Illegal: SC Allows Partial Enforcement Due to Separability of Transactions

State of Jammu & Kashmir And Others Vs Caltex India (Ltd.) (Supreme Court of India) The case concerns the levy of sales tax on petrol and allied products supplied by the respondent company from its depot in Punjab to the State Mechanized Farm at Nandpur in Jammu & Kashmir under a contract with the Director-General of Supplies, Delhi. The Petrol Taxation Officer assessed sales tax for the period January 1955 to May 1959 under the Jammu & Kashmir Motor Spirit (Taxation of Sales) Act, 2005 through a single composite assessment order. The respondent challenged the assessment before the...