STATE OF ANDHRA PRADESH vs M/S. REPUTE PLASTIC COLOURS LTD.

The Supreme Court upheld the decision of the Andhra Pradesh High Court affirming the Sales Tax Appellate Tribunal's ruling that M/s. Repute Plastic Colours Ltd. was entitled to a set-off of tax on the purchase of Low Density Polyethylene (LDPE) granules used in manufacturing cable sheathing compound. The Court noted that the Tribunal's finding that LDPE granules remained unchanged and did not constitute a new product was a factual determination that could not be interfered with. Consequently, the appeals by the Commissioner of Commercial Taxes were dismissed, maintaining the entitlement to the tax set-off as claimed by the respondent.