Taxation Lawyer: Separate Commercial commodities emerging out of the goods already taxed is liable to Sales Tax/ GST; SC.

Supreme Court of India

Justice Ajay Rastogi and Justice A M Khanwilkar

It was held by SC {M/s Craft Interiors Ltd. Vs. Joint Commissioner of Commercial Taxes} in respect of Karnataka Local Sales Tax Law, that if the goods are transformed into a different commodity which then is used in the execution of works contract, then the benefit of deduction cannot be availed.

Also held that the tax provisions granting exemptions/ concessions are required to be strictly construed. It was also held that when separate commercial commodity emergs out of the goods already taxed, that is also liable for tax. Finally the appeal filed by the company stands dismissed.