The State Of Gujarat vs M/S Ambuja Cement Ltd

The Supreme Court held that under Section 11(3)(b) of the Gujarat Value Added Tax Act, 2003, the Value Added Tax and the value of purchases on which no tax credit was claimed cannot be included in the taxable turnover of purchases. The Court affirmed the interpretation of the Gujarat Value Added Tax Tribunal and the High Court, stating that the definition of 'purchase price' under Section 2(18) does not encompass VAT. Consequently, the appeal by the State of Gujarat was dismissed, upholding the lower courts' decisions.