https://www.taxtmi.com/caselaws?id=103329 Section 5(4) of the Karnataka Sales Tax Act, read with Explanation II to item 2 of the Fourth Schedule, was treated as discriminatory because it denied exemption to finished goods manufactured from iron scrap that had not suffered tax and thus favoured goods made from locally purchased tax-suffered scrap over identical goods made from imported scrap. The Court held that this was differential treatment based on the source of the raw material, not a mere difference in tax burden, and that a State law cannot impose unequal tax treatment on similar goods manufactured in the State and similar goods brought in from outside. The provision was therefore held violative of article 304(a) and ultra vires. en-us Fri, 30 Mar 1990 00:00:00 +0530 Thu, 08 Oct 2015 18:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103329 Section 5(4) of the Karnataka Sales Tax Act, read with Explanation II to item 2 of the Fourth Schedule, was treated as discriminatory because it denied exemption to finished goods manufactured from iron scrap that had not suffered tax and thus favoured goods made from locally purchased tax-suffered scrap over identical goods made from imported scrap. The Court held that this was differential treatment based on the source of the raw material, not a mere difference in tax burden, and that a State law cannot impose unequal tax treatment on similar goods manufactured in the State and similar goods brought in from outside. The provision was therefore held violative of article 304(a) and ultra vires. Case-Laws VAT and Sales Tax Fri, 30 Mar 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103329