LAW FOR ALL

Corporate Laws :- Sales Tax -Sales Tax Holidays = whether the Government Order No.CI 30 SPC 96 dated 15th March, 1996, namely, the Industrial Policy merely provides for sales tax concession and incentives and nothing more.? The core issue raised in these appeals, in our opinion, is no more res integra. It has been answered in the decision of this Court in “Malnad Areca Processing and Marketing Limited vs. Deputy Commissioner of Commercial Taxes (Assessment) and Others”, reported in (2008) 11 SCC 536. This very Industrial Policy, 1996 was considered by the Court. The Court opined that the same provides for exemption only in respect of sales tax and not for purchase tax as such. As observed in the case of Malnad (supra), the State can levy tax both at the sale point and/or at the purchase point. That distinction being clear, the question of assuming that the purchase tax was also part of the industrial policy under consideration cannot be countenanced. As a result, we find no reason to deviate from the view taken by the High Court in following the principle expounded in the decision of Malnad (supra).