SUNDARAM FINANCE LTD. vs STATE OF KERALA AND ANOTHER

The Supreme Court held that under the Travancore-Cochin General Sales-tax Act, 1125 M.E., the appellants, who financed the purchase of motor vehicles through hire-purchase agreements, were deemed 'dealers' and liable for sales tax. The Court clarified that the true nature of a transaction can be determined by examining the agreement's terms and surrounding circumstances, allowing the court to look beyond the documents to ascertain the actual transaction. The High Court's rejection of the appellants' petitions for writs against the Sales-tax Officer was upheld, affirming the tax liability on the hire-purchase transactions.