The Excise Commissioner, Karnataka vs Mysore Sales International Ltd And Ors. ...

The Supreme Court examined the applicability of Section 206C of the Income Tax Act, 1961, concerning the appellant's obligation to collect income tax at source from liquor vendors. The Court held that the liquor vendors, who purchased vending rights from the appellant, qualify as 'buyers' under Explanation (a) to Section 206C, thus affirming the assessing officer's orders requiring the appellant to collect tax. The appeal against the High Court's dismissal of the writ petition was therefore rejected, upholding the revenue's demand for tax collection.