BHOPAL SUGAR INDUSTRIES LTD. vs SALES TAX OFFICER, BHOPAL

The Supreme Court ruled that the petrol consumed by the appellant, a sugar manufacturer, for its own purposes was not subject to sales tax. The Court held that upon delivery, the appellant became the owner of the goods, and consumption for its own use was not as an agent but as an owner. The judgment clarified that the nature of the agreement should be interpreted based on substance rather than form, emphasizing that restrictions imposed by the seller do not automatically convert a sale into an agency relationship.