COMMISSIONER OF SALES TAX, GUJARAT vs M/S. SABARMATI RETI UDYOG SAHAKARI MANDALI LTD.

The Supreme Court held that the transaction in question constituted a contract of sale under the Bombay Sales Tax Act, 1959, as the true construction of the contract's terms indicated an intention to transfer property in goods. The Court emphasized that the distinction between a contract of sale and a works contract is based on the intention of the parties and the specific terms of the contract. The High Court's ruling in favor of the assessee was overturned, affirming that the supplies made were indeed sales liable to sales tax.