M/S. INDIAN DAIRY MACHINERY CO. LTD. vs ASST. COMMNR. OF COMMERCIAL TAXES

The Supreme Court upheld the Karnataka High Court's dismissal of the Revision Petition under Section 23(1) of the Karnataka Sales Tax Act, 1957, affirming the Karnataka Appellate Tribunal's decision regarding the applicability of the amended Section 17(7) effective from 1.4.2002. The Court established that the amendment restricts the benefit of composition for dealers receiving goods from outside the State for works contracts, thereby denying the appellant's claim for such benefit. The judgment confirmed that the Tribunal's interpretation of the amendment was correct and applicable to agreements made prior to its enactment.