In Brief
Casio India purchased radio pagers from an exempted manufacturer (Bharati Telecom Limited) and sold them in inter-state trade without charging Central Sales Tax, relying on a 1995 notification exempting goods manufactured by exempted units. The assessee was denied exemption. The High Court held that exemption applied only to inter-state sales by the exempted manufacturer itself, not by subsequent purchasers. The Supreme Court reversed, holding that the notification exempts goods (not persons) manufactured by exempted units, and there is only one inter-state sale from Haryana, so the exemption extends to any dealer's inter-state sale of such goods.
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