As per case facts the appellants who import asbestos cement sheets and bricks into Rajasthan challenged a State notification granting Value Added Tax VAT exemption on such goods manufactured locally ... provided they contained ge fly ash claiming it was discriminatory and violated Article a of the Constitution of India as a barrier to inter-state trade The High Court dismissed their petitions by relying on a precedent Video Electronics that allowed time-bound exemptions for a special class of industries to promote economic development The question arose Whether the High Court was right in dismissing the writ petitions by holding that the impugned notification granting tax exemption for locally manufactured asbestos sheets did not violate Article a of the Constitution Finally the Supreme Court allowed the appeals holding that the notification violated Article a because it was discriminatory The exemption was not limited to new industries or a specified period and importantly it was not conditioned on using fly ash sourced within the State thus creating an unfavorable bias against imported goods which is prohibited under the test laid down in Jindal Stainless Ltd

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