STATE OF ANDHRA PRADESH vs KOLLA SREERAMA MURTHY

The Supreme Court held that the transactions in question did not constitute 'sales of goods' under Section 3 of the Madras General Sales Tax Act, 1939, as the property in goods had not passed to the respondent at the time of the contract. The Court clarified that the endorsement of delivery orders does not equate to a completed sale, referencing the principles established in Butterworth v. Kingway Motors Ltd. and Bayyana Bhimayya v. State of Andhra Pradesh. Consequently, the assessment of sales tax on the respondent was deemed invalid, leading to the appeal's dismissal in favor of the respondent.