STATE OF KARNATAKA vs M/S. SRI CHAMUNDESWARI SUGAR LTD.

The Supreme Court addressed the issue of purchase tax levied on amounts paid by sugar factories to sugarcane growers beyond the statutory minimum price under the Sugarcane (Control) Order, 1966. The Court held that the total price for sugarcane includes only the minimum price and any additional price fixed under the relevant clauses, reaffirming that without a contractual basis, no excess payment is required. The appeal was dismissed, upholding the High Court's decision that all amounts paid to growers must be considered as part of the purchase price under the Karnataka Sales Tax Act, 1957.