The Additional Commnr.Of ... vs Ayili Stone Industries Etc.Etc

The Supreme Court upheld the High Court's decision regarding the interpretation of Entry No. 17(1) of Part S of the Karnataka Sales Tax Act, 1957, clarifying that the activity of cutting and polishing rough granite does not constitute manufacturing, thus allowing the imposition of sales tax on polished granite stones sold within the State. The Court emphasized that exemptions granted based on erroneous interpretations of the Act were invalid. The appeals were dismissed, affirming the High Court's ruling that the revisional authority's order was justified under Section 12-A(1) of the Act.