In Brief
ITC Limited, a wheat purchaser and supplier, sought exemption from purchase tax on wheat supplied to flour mills for processing under Section 4B(1)(a-1) of the U.P. Trade Tax Act. The Deputy Commissioner and High Court denied the exemption, arguing the law covered only 'sale', not 'supply'. The Supreme Court held that the statute and Notification clearly use 'sold or supplied', and both forms must be honoured. The three conditions in the Notification apply differently: sellers must meet all three; suppliers need only satisfy condition 2. Since ITC satisfied condition 2 and was the genuine first purchaser supplying to mills holding valid recognition certificates, it was entitled to the exemption. The Court set aside the High Court's order and allowed the appeal.
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