STATE OF KARNATAKA vs B.M.ASHRAF AND CO.

The Supreme Court held that the respondent, a registered dealer under the Karnataka Sales Tax Act, 1957, is liable to pay purchase tax under Section 6 of the Act for purchasing fish oil from unregistered dealers. The Court found that the High Court's conclusion that no purchase tax was payable was incorrect, as the sale to M/s. Kalbhavi Venkatarao & Bros. did not exempt the respondent from tax liability. The Court clarified that the provisions of Section 6, when read with Section 5 of the Central Sales Tax Act, apply to the respondent's transactions, thus affirming the tax levy.