DY. COMMISSIONER OF SALES TAX (LAW) BOARD OF REVENUE (TAXE vs PADINJARAKARA AGENCIES

The Supreme Court held that the rate of purchase tax applicable to goods purchased before 30th June 1974 should be 3%, as the purchases were deemed last purchases within the State only after subsequent events confirmed this status. The Court clarified that the liability to tax arises when it is determined that the purchases qualify as last purchases, as per Item 71 of the First Schedule to the Kerala General Sales Tax Act. The appeal was dismissed, affirming the High Court's decision on the tax rate.