The pre-2001 Karnataka sales tax exemption for sugar covered...

The pre-2001 Karnataka sales tax exemption for sugar covered imported sugar because the reference to the Additional Duties of Excise Act identified the commodity without imposing an origin-based limitation. The 2001 amendment restricting the exemption to sugar produced or manufactured in India was substantive and retrospective, but remained within legislative competence and was constitutionally valid. Retrospective taxation could determine the principal tax liability, while penalty was unavailable for transactions previously treated as exempt and interest could apply only from the lawful reassessment demand. Inter-State sales remained governed by the Central Sales Tax Act, including its applicable rate and conditions, requiring recomputation for the relevant period.

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