Commercial Tax Officer & Ors vs State Bank Of India & Anr

The Supreme Court ruled that the State Bank of India (SBI) is not liable to pay purchase tax under Section 5(6a) of the Bengal Finance (Sales Tax) Act, 1941 for accepting Exim Scrips at a premium, as the purchase does not fall under the provisions of Section 4(6)(iii) of the Act. The Court upheld the High Court's decision which quashed the orders of the revenue authorities and the Taxation Tribunal, thereby confirming that the SBI's actions were in compliance with the Reserve Bank of India's directives. The judgment clarifies the tax implications of transactions involving Exim Scrips.