« From the Courts » Open DEMAT Account in 24 hrs  Supreme Court Clarifies IBC Appeal Limitation Rules: 60-Day Deadline Cannot Be Extended by Delayed Receipt of Certified Order  CBDT Circulars Cannot Override Income Tax Act, Not Binding on Courts: Supreme Court «  Tata Hospital not liable to pay sales tax... SC: Arbitration agreements must be adhered to by the parties... » Punjab Govt appeal dismissed March, 21st 2008 The Supreme Court last week dismissed the appeal of the Punjab government against the judgment of the high court allowing sales tax deduction for Perfect Synthetics, manufacturers of yarn.   The companys stand was that it bought raw materials from tax-exempted units within the state and used them in the manufacture of yarn. A majority of the yarn was sold intra-state and tax on finished goods was paid.   However, the department did not allow deduction in the taxable turnover on the ground that the goods bought by the company are liable to tax at the first stage of sale.   Since no tax on purchase of raw materials from exempted units has been paid, the company was not entitled to the deduction under Rule 29. The high court rejected the departments view and it has been upheld by the Supreme Court.