M/S. Hindustan Shipyard Ltd vs State Of Andhra Pradesh

The Supreme Court analyzed whether the transactions involving the manufacture and supply of ships by Hindustan Shipyard Limited constituted a sale under clause (n) of Section 2 of the Andhra Pradesh General Sales Tax Act, 1957, or a works contract under clause (t) of the same Act. The Court upheld the Sales Tax Appellate Tribunal's decision that certain contracts were works contracts, following the precedent set in Hindustan Shipyard Limited vs. The Commercial Tax Officer and the principles established in Union of India vs. The Central India Machinery Manufacturing Co. Ltd. The Court concluded that the transactions involving 10 ships were not liable for sales tax, affirming the Tribunal's ruling.