COMMERCIAL TAX OFFICER vs STATE BANK OF INDIA

The Supreme Court addressed the liability of the State Bank of India (SBI) under the Bengal Finance (Sales Tax) Act, 1941, specifically regarding the purchase tax under Section 5(6a) for accepting Exim Scrips. The Court upheld the Calcutta High Court's decision that SBI's purchase of Exim Scrips did not attract the provisions of Section 4(6)(iii) of the Act, thereby quashing the orders of the revenue authorities and the Taxation Tribunal. The ruling clarified the applicability of tax provisions in the context of banking operations and compliance with RBI directives.