INSTALLMENT SUPPLY (P.) LTD. AND ANOTHER vs THE UNION OF INDIA AND OTHERS

The Supreme Court interpreted Section 2(g) of the Bengal Finance (Sales Tax) Act, 1941, as extended to Delhi, affirming that a hire-purchase agreement constitutes a sale under the Act, despite the seller retaining title until full payment. The Court held that the agreement involved both a contract of bailment and an element of sale, thus subjecting the transaction to sales tax. The Court rejected claims of unconstitutionality and violation of Article 14, emphasizing that taxation matters do not invoke res judicata.