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SC Bars Dual CST Exemptions for Cement Dealers
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Supreme Court of Indiatax

SC Bars Dual CST Exemptions for Cement Dealers

October 10, 2026

Supreme Court rules cement dealers cannot claim both 6% CST concession and partial exemption under Rajasthan's 1986 notification in same year.

SC Clarifies CST Exemptions Cannot Be Duplicative

The Supreme Court ruled that cement dealers are not entitled to simultaneously claim a 6% concessional Central Sales Tax (CST) rate and a partial exemption under Rajasthan’s notification dated June 19, 1986, for the same assessment year. The decision curbs the practice of stacking fiscal benefits.

The court interpreted the hierarchy and exclusivity of notifications under the CST regime, holding that when a specific rate is granted under one provision, it excludes parallel claims under another.

"The legislative intent was not to allow cumulative exemptions,"
the bench noted, emphasizing equitable tax administration.

While the CST regime is largely superseded by GST, this judgment retains significance for pending assessment proceedings and sets a precedent for interpreting overlapping fiscal notifications. Tax professionals handling legacy cases must ensure claims are not duplicative or inconsistent with statutory intent.

Citations

  • Section 5C, CST Act
  • Rajasthan Sales Tax Notification 1986
Practice Areas:tax

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