TIKA RAM & SONS LTD. ETC. vs THE COMMISSIONER OF SALES TAX U.P., LUCKNOW

The Supreme Court upheld the constitutional validity of Explanation II (ii) to Section 2(h) of the U.P. Sales Tax Act, 1948, stating that for tax liability, it is sufficient that goods were sold by the manufacturer, regardless of when they were produced. The Court clarified that a proper territorial nexus between the taxing authority and the transaction is sufficient for imposing sales tax, affirming that manufacturing within the state establishes such a nexus. The appeal was dismissed, affirming the High Court's decision in favor of the Commissioner of Sales Tax.