In Brief
ITC Limited, a first purchaser of wheat in Uttar Pradesh, supplied wheat to roller flour mills for processing into flour and claimed exemption from purchase tax under Section 4B(1)(a-1) of the U.P. Trade Tax Act, 1948 and a 2003 notification. The State denied the benefit, and the High Court upheld this denial. The Supreme Court reversed, holding that Section 4B(1)(a-1) explicitly provides relief when goods are 'sold or supplied' to eligible dealers—the word 'supplied' is not redundant. The Court clarified that only dealers who sell must satisfy all three prescribed conditions; dealers who supply need only satisfy the condition that the recipient holds a valid recognition certificate. The appeals were allowed with consequential relief.
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