VAT exemption for water distributor upheld based on producer's prior exemption decision and subject exemption rules.

The Supreme Court allowed the taxpayer's appeal against a tax authority decision imposing VAT on bottled water. The taxpayer argued exemption based on the producer's prior ruling classifying the water as 'drinking water,' while the tax authority claimed the distributor failed to exercise due diligence. The court ruled that since the producer was already exempt under subject-based exemption rules, the distributor's liability was negated, and the administrative regulation cited was invalid without explicit statutory authorization.