MANGANESE ORE (INDIA) LTD. A vs THE REGIONAL ASSISTANT COMMISSIONER OF SALES TAX,JABALPUR

The Supreme Court held that under Section 5(1) of the Central Sales Tax Act, 1956, sales that do not directly occasion export are not exempt from taxation. The Court clarified that sales through intermediaries do not qualify as 'sales occasioning export' as per the precedent set in Md. Serajuddin v. State of Orissa. Consequently, the imposition of tax on certain sales by Manganese Ore (India) Ltd. was upheld, while the penalty for belated return filing was quashed, as it was not provided for under the Act.