M/S BHARJATIYA STEEL INDUSTRIES vs COMMISSIONER, SALES TAX, U.P.

The Supreme Court addressed the applicability of Section 4-B(2) of the U.P. Trade Tax Act regarding tax concessions for raw materials. The Court held that the appellant's sale of unusable scrap did not constitute a breach of the undertaking to utilize the material for manufacturing, as the conditions of sale explicitly prohibited sorting. The High Court's decision to impose a penalty was overturned, affirming the Tribunal's finding that there was no malafide intent on the part of the appellant, thus ruling in favor of the appellant.