M/S. JAY VEE RICE & GENERAL MILLS vs STATE OF HARYANA .

The Supreme Court addressed the interpretation of Note (i) to Schedule III under Clause 2(i) of the Haryana Rice Procurement Levy Order, 1985, and the applicability of purchase tax under the Haryana General Sales Tax Act, 1973. The Court held that the appellants, while exempted from sales tax, were required to pay the purchase tax collected from the District Food and Supplies Controller (DFSC) as it was included in the procurement price. The judgment clarified that the exemption under Section 13-B of the Act does not extend to the purchase tax collected, thus affirming the state's authority to recover such amounts.