M/S. FALCON TYRES LTD. vs STATE OF KARNATAKA .

The Supreme Court ruled that rubber, despite being processed, retains its identity as agricultural produce under the Karnataka Tax on Entry of Goods Act, 1979. The Court emphasized that the processing of rubber does not alter its fundamental nature as caoutchouc or latex, which is included in the definition of agricultural produce. Consequently, the Court held that the appellant is entitled to exemption from entry tax on rubber brought into the local area, reversing the decisions of the assessing authority and the first appellate authority.