M/S DUGAR TEA INDUSTRIES PVT.LTD. vs STATE OF ASSAM .

The Supreme Court ruled that the Assam Industries (Sales Tax Concession) Act, 1987 does not provide for sales tax exemption for blending and packing of tea, as tea is classified as a raw material. The Court held that the appellant, M/s Dugar Tea Industries Pvt. Ltd., was not engaged in manufacturing but merely processing tea, thus ineligible for the claimed tax concessions. The appeals against the Gauhati High Court's dismissal of the appellant's petitions were consequently dismissed, affirming the High Court's decision.