Paddy purchase tax benefit under CST Act denied for rice sold in inter-State trade, following binding precedent.

Tax paid on purchase of paddy could not be claimed as a benefit under Section 15(c) of the Central Sales Tax Act, 1956 in respect of rice produced from that paddy and sold in inter-State trade. The Court treated the issue as settled by an earlier Division Bench ruling and followed that precedent, holding that the claimed benefit was unavailable. The disallowance of the benefit was therefore upheld, and the revisionists were denied relief.

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Issues: Whether the benefit of tax paid on purchase of paddy, out of which rice was produced and sold in inter-State trade, was admissible under Section 15(c) of the Central Sales Tax Act, 1956.

Analysis: The claim for benefit of tax paid on purchase of paddy had been rejected by the assessing authority and the rejection was affirmed in appeal. The controversy was held to be no longer res integra in view of the Division Bench decision relied upon by the Court, which had already ruled that such benefit could not be claimed under Section 15(c) of the Central Sales Tax Act, 1956.

Conclusion: The disallowance of the claimed benefit was upheld and the revisionists were not entitled to relief.

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