COMNR. OF SALES TAX, U.P. vs S/S/ MOOL CHAND RAM PRASAD — C.A. No. 1252/2001

CASE SUMMARY: C.A. No. 001252/2001 The Supreme Court allowed the Commissioner of Sales Tax, U.P.'s appeal against a 1979 High Court decision that had dismissed the tax authority's revision petition. The dispute concerned tax liability for a grain dealer's purchases during 1966-67, specifically regarding broken dal and rice. The High Court had relied on M/s Gouti Bandhu case to hold that Explanation II to Section 3-D of the U.P. Sales Tax Act, 1948 had ceased to apply, thus processed foodgrains were not taxable separately. The Supreme Court reversed this, noting that the State Legislature subsequently re-introduced Explanation II via the 1980 Amendment Act with retrospective effect, establishing that split/processed foodgrains are different commodities attracting separate tax liability. Each party bore its own costs. This case analysis is maintained by casestatus.in based on publicly available court records.