ASHOK LEYLAND LTD. vs UNION OF INDIA .

The Supreme Court addressed the issue of taxation under the Central Sales Tax Act, specifically regarding the classification of vehicle transfers from Tamil Nadu to other states. The Court held that such transfers do not constitute inter-State sales under Section 3(a) of the Central Sales Tax Act, as they are merely consignments for local sales. The Court ruled that the State of Tamil Nadu cannot levy sales tax on these transactions, affirming the principle that a transaction cannot be taxed twice for the same sale, thereby protecting the appellant from harassment due to double taxation.