State Of Karnataka vs Azad Coach Builders Pvt. Ltd. Etc

The Supreme Court ruled that Azad Coach Builders Pvt. Ltd. is entitled to the benefit under Section 5(3) of the Central Sales Tax Act, 1956, as the export of complete buses constitutes a penultimate sale. The Court held that the distinction made by the department between 'bus-body' and 'complete bus' is not valid, as the identity of the bus remains unchanged after the body is constructed. The judgment clarified that the sale of the bus-body to the exporter qualifies for exemption under Section 5(3) since the exported commodity is the complete bus, which includes the bus-body manufactured by the assessee.