No exemption from TCS on Purchase of Tendu leaves from Forest Department for Sale to manufacturer of bidis

Gondia Beedi Leaves Contractors Association Vs Union of India (Bombay High Court) It is admitted that the re-sale of Tendu leaves, as it is without any process, after purchase from the Forest Department would amount to trading which does not qualify for exemption under sub-section (1A) of Section 206C of the Income Tax Act. It is the submission that the unprocessed Tendu leaves cannot be utilized for the purposes of manufacture or production of bidis and in such a case, the character of Tendu leaves is not changed. According to Shri Kaptan, the processed Tendu leaves sold are actually utilized...