COMMR. OF SALES TAX, ORISSA vs JAGANNATH COTTON CO.

The Supreme Court held that the Industrial Policy Resolution of 1986 and 1989 does not exempt small scale industries from the requirement of engaging in manufacturing for sales tax benefits. The Court found that the process of obtaining cotton from waste cotton does not qualify as manufacturing under the relevant statutes. Consequently, the High Court's ruling allowing the exemption was overturned, affirming that concessions provided under the policy were intended to promote genuine manufacturing activities.