AdvertisementState of Karnataka Vs M.K. Ltd. (Supreme Court of India) The Supreme Court considered appeals involving the interpretation of Section 17 of the Karnataka Value Added Tax Act, 2003 (KVAT Act) read with Rule 131 of the Karnataka Value Added Tax Rules, 2005. The respondent-assessee manufactured sunflower oil by extracting oil from sunflower oil cake through a solvent extraction process. During this process, de-oiled sunflower cake emerged as a by-product. While VAT was payable on the purchase of sunflower oil cake as input and on the sale of sunflower oil, no VAT was payable on the...