Union Of India And Anr vs Om Prakash S.S. And Company And Anr

The Supreme Court held that Section 206-C of the Income Tax Act, 1961 applies only when a payment entitles a person to receive specific goods, not merely for obtaining a license to carry on business. The Court clarified that a licensee does not qualify as a 'buyer' under this section, as the license fee does not grant rights to specific goods. Consequently, the Court dismissed the special leave petition, affirming that the provisions of Section 206-C are not applicable in the context of licenses for liquor trade.