M/S.HINDUSTAN SHIPYARD LTD vs STATE OF A.P.

The Supreme Court addressed whether the transactions of ship manufacture and supply by Hindustan Shipyard Limited constituted a sale under Section 2(n) of the Andhra Pradesh General Sales Tax Act, 1957, or a works contract under Section 2(t). The Court upheld the Tribunal's decision that the contracts for 10 ships 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. CIMMCO. The outcome confirmed that these transactions were not subject to sales tax.