SHREE MAHAVIR OIL MILLS vs STATE OF JAMMU AND KASHMIRE .

The Supreme Court addressed the issue of sales tax exemptions for local edible oil manufacturers in Jammu & Kashmir under the Jammu & Kashmir Sales Tax Act, 1962. The Court held that the exemption provided under S.R.O.93 of 1991, which allowed small scale industrial units to be exempt from sales tax for a period of five years, was valid and aimed at protecting local industries from competition with out-of-state manufacturers. The Court upheld the government's decision to shift edible oils from Schedule-D to Schedule-C, affirming the need for such measures to promote local industrialization.