M/S. Jay Bharat Credit And Investment ... vs Commissioner Of Sales-Tax & Anr

The Supreme Court addressed whether hire purchase transactions are subject to sales tax on the total proceeds, including finance charges, under the Bengal Finance (Sales Tax) Act, 1941. The Court held that the sales tax should only be levied on the sale price of the vehicle at the time of purchase option exercise, excluding hire charges. The judgment clarified the interpretation of 'sale' under the Act, affirming that hire purchase agreements do not constitute a sale until the option to purchase is exercised, thus ruling in favor of the appellants.