ASSOCIATED CEMENT COMPANIES LIMITED, KYMORE vs COMMISSIONER OF SALES-TAX, INDORE, ETC. ETC.

The Supreme Court held that the Explanation to Article 286(1)(a) of the Constitution does not apply to sales of cement between a manufacturer and a marketing company within Madhya Pradesh, as there were preceding local sales where title passed to the marketing company. The Court affirmed that the transactions were not subject to sales tax due to the absence of inter-State sales as defined by the Central Sales Tax Act. The appeals were dismissed, upholding the assessments made by the authorities based on the precedent set in Rohtas Industries Limited v. State of Bihar, 12 STC 621.