DY. COMMNR. OF COMMERCIAL TAXES (VIGIL) vs M/S HINDUSTAN LEVER LTD.

The Supreme Court upheld the decision of the Karnataka High Court affirming the order of the Karnataka Appellate Tribunal, which rejected the sales tax exemption claim of M/s Hindustan Lever Limited under the Karnataka Sales Tax Act, 1957. The Court found that the respondent violated the conditions of the exemption notification dated 19.06.1991 by pricing tea packets from the exempt unit similarly to those from a non-exempt unit, thereby disqualifying them from the exemption. The Court reiterated that compliance with the conditions of exemption is mandatory for availing benefits under the KST Act.