Neyveli Lignite Corporation Ltd vs Commercial Tax Officer, Cuddalore And ...

The Supreme Court held that the subsidy received by the appellant under the Fertilizer (Control) Order, 1985 does not form part of the taxable turnover under the Tamil Nadu General Sales Tax Act. The Court clarified that the subsidy is not a consideration for the sale of fertilizer but rather a reimbursement to ensure affordability for agricultural purposes. Consequently, the decision of the Tamil Nadu Taxation Special Tribunal was overturned, and the appeal was allowed.