In Brief
A coffee curing company challenged the State of Karnataka's refusal to extend sales tax exemptions granted under the Industrial Policy, 1996 to cover purchase tax as well. The Supreme Court held that the policy exempts only sales tax, not purchase tax. Although sale and purchase are two aspects of the same transaction, states may levy tax at either point. The inclusion of the company's industry in the policy's appendix did not alter the policy's substance. The Court upheld the High Court's decision and dismissed the appeals, applying established precedent that sales tax exemption policies do not extend to purchase tax.
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