M/S Monga Rice Mill Etc vs State Of Haryana & Anr

The Supreme Court examined the legality of the State's power to levy purchase tax on paddy purchased by a miller for the purpose of exporting rice, in light of Section 5(3) and Section 15(ca) of the Central Sales Tax Act, 1956, and Article 286 of the Constitution. The Court held that the purchase of paddy by the miller for sale to the exporter does not qualify as a sale in the course of export, thus affirming the High Court's decision that the purchase tax is applicable under the Haryana General Sales Tax Act, 1973. Consequently, the appeals were dismissed, upholding the tax levy.