M/s. T. V. SUNDRAM IYENGAR & SONS vs THE STATE OF MADRAS

The Supreme Court held that under the Mysore Sales Tax Act, 1957, the transaction between the assessee and the Government was a works contract rather than a sale of goods. The Court emphasized that the legal definition of 'sale of goods' must align with the Sale of Goods Act, 1930, and clarified that property in the bus bodies did not pass to the customers until delivery of the completed buses. The judgment of the Mysore High Court was upheld, affirming that the agreement did not constitute a sale under the relevant tax laws.