COMMISSIONER OF SALES TAX, LUCKNOW vs D. S. BIST & ORS.

The Supreme Court upheld the High Court's decision that the sale of processed tea leaves by an agriculturist is exempt from sales tax under the proviso to Section 2(i) of the U.P. Sales Tax Act, 1948. The Court established that the processing of tea leaves did not alter their character as agricultural produce, as the processes involved were minimal and necessary for preservation and marketability. Consequently, the appeal by the revenue was dismissed, affirming the exemption from sales tax.