CHHITTER MAL NARAIN DAS vs COMMISSIONER OF SALES TAX

The Supreme Court held that the supply of wheat to the Regional Food Controller under the U.P. Wheat Procurement (Levy) Order, 1959 does not constitute a 'sale' under the U.P. Sales-tax Act, 1948. The Court reasoned that the compulsory nature of the supply, as mandated by Clause 3 of the Order, does not create a contractual obligation, thus exempting the transaction from sales tax. The Court allowed the assesses' appeal, overturning the High Court's decision that had upheld the tax levied by the Sales-tax Officer.