Authority: Supreme Court of India

Order Date: 16-07-2026

Case Overview

  • Appellant: M/S National Traders; Respondent: State of Karnataka.
  • Appeal concerns levy of sales tax on sale of old newspapers under Karnataka Sales Tax Act, 1957 and Central Sales Tax Act, 1956 for assessment years 2000‑2001 to 2002‑2003.
  • Appellant claimed exemption relying on Sait Rikhaji Furtarnal & another v. State of Andhra Pradesh (1992) 85 STC 1.
  • State opposed, citing Indian Express Private Limited v. State of Tamil Nadu (1987) 67 STC 474 and The Hindu v. State of Tamil Nadu (1987) 67 STC 477, which upheld taxability.
  • The jurisdictional High Court reversed the tribunal’s order, accepted the State’s revision petition, and held that sale of old newspapers is liable to sales tax, leading to the present Supreme Court appeal.
  • The Court observed that Sait Rikhaji omitted consideration of Indian Express precedent, resulting in divergent views on the taxability of old newspapers.

Final Outcome

  • The Court directed the Registry to place the matter before the Chief Justice of India for constituting an appropriate three‑Judge Bench to provide an authoritative pronouncement.
  • The matter will be listed before the larger Bench, and upon receipt of its opinion, the case will be returned to this Court for further orders.

Topics: Taxation, Judicial Review