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Supreme Court of India 2020-06-29 dismissed

Commercial Tax Officer & Anr vs Mohan Brewaries and Distrilleries Limited

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

This case concerns the levy of purchase tax on bottles used to contain and sell liquor under the Tamil Nadu General Sales Tax Act, 1959. The Commercial Tax Officer contended that purchase tax was payable even though the liquor itself was not subject to sales tax. The Court upheld the High Court's decision, holding that purchase tax applies to goods consumed or used in the course of business, regardless of whether sales tax was charged. The Court clarified that the rule of ejusdem generis does not mechanically restrict the general words 'or otherwise' in the statute, and that the containers and their contents may be taxed independently.

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