Relief to Ambuja Cement Ltd: “Purchase Price” not Inclusive of VAT, Supreme Court upholds Exclusion of VAT

The Supreme Court provided relief to Ambuja Cement Ltd by upholding that the purchase price of goods is not inclusive of Value Added Tax (VAT) already paid on purchases. This decision affirms the exclusion of VAT from the total purchase price, preventing double taxation and aligning with the principle of tax neutrality. The ruling is significant for businesses, ensuring clarity in tax calculations and preventing disputes with tax authorities over VAT inclusions in the purchase price.