https://www.taxtmi.com/caselaws?id=164592 Exemption on purchase tax for raw material used in manufacturing notified goods for export could not be denied merely because an incidental by-product, broken rice, emerged during production. The assessee purchased paddy only for making exported basmati rice, and no separate raw material was bought for broken rice. The court held that separate taxation of the by-product did not justify a proportionate levy on the paddy used for the main exported product. The purchase tax demand to the extent attributable to broken rice was therefore unjustified and was set aside, while the separate tax treatment of broken rice remained undisturbed. en-us Mon, 18 Jan 2010 00:00:00 +0530 Sat, 18 Oct 2014 08:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164592 Exemption on purchase tax for raw material used in manufacturing notified goods for export could not be denied merely because an incidental by-product, broken rice, emerged during production. The assessee purchased paddy only for making exported basmati rice, and no separate raw material was bought for broken rice. The court held that separate taxation of the by-product did not justify a proportionate levy on the paddy used for the main exported product. The purchase tax demand to the extent attributable to broken rice was therefore unjustified and was set aside, while the separate tax treatment of broken rice remained undisturbed. Case-Laws VAT and Sales Tax Mon, 18 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164592