M/S HIGH RANGE COFFEE CURING PVT.LTD. vs THE STATE OF KARNATAKA

The Supreme Court reaffirmed the interpretation of the Industrial Policy, 1996, stating that it provides exemptions solely for sales tax and not for purchase tax, as established in Malnad Areca Processing and Marketing Limited vs. Deputy Commissioner of Commercial Taxes (2008) 11 SCC 536. The Court emphasized that the classification of tax exemptions is within the legislative power, and the government order allows new industrial units to opt for sales tax exemption or deferment. The Court upheld the High Court's conclusion that the notification aligns with the Industrial Policy, confirming the legality of the sales tax exemption under Section 5 of the relevant Act.