INDIRECT INPUTS TOO GET TAX SOPS

The Supreme Court has ruled that the sales-tax exemption can be availed on raw materials eligible for tax concessions even if they are used indirectly in manufacturing the final product. The Government cannot levy sales tax on items under the plea that they were intermediates and not directly used for manufacturing the final product, the apex court said while dismissing an appeal of Udaipur’s commercial taxation officer. The case pertains to diesel used for generation of power consumed to manufacture polyester yarn.