In Brief
This case addresses whether Pan Masala containing tobacco is taxable under three state sales tax acts despite being granted exemption as 'tobacco'. The Supreme Court held that a specific entry prescribing tax rates cannot override a general exemption entry in the same statute. Following the principle in Reliance Trading Company v. State of Kerala, the Court concluded that the incidence of tax, exemption, and rate of tax are distinct statutory components that cannot be confused. Once an exemption is granted, a subsequent amendment only to the rate schedule does not withdraw that exemption. The bench also addressed the doctrine of precedent, noting the conflict between two lines of cases and requesting the Chief Justice to constitute an appropriate bench to finally settle the law on this issue."
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