THE STATE OF TAMIL NADU vs SRI SRINIVASA SALES CIRCULATION ETC.

The Supreme Court examined the nature of transactions under the Tamil Nadu General Sales Tax Act, 1959, specifically under Section 38, to determine tax liability. The Court held that the scheme floated by the respondent constituted a sale, as it involved the transfer of goods in exchange for consideration. Consequently, the High Court's order was set aside, affirming the tax liability on the transactions in question.