State Of Tamil Nadu vs M/S. Kerala State Small Industries ...

The Supreme Court held that the High Court erred in setting aside the orders of assessment for central sales tax against the Kerala State Small Industries Development and Employment Corporation Ltd. The Court found that the High Court's conclusion regarding the unloading of cement at Tuticorin port being a fortuitous circumstance due to congestion at Cochin port lacked evidentiary support. The Court reinstated the assessment orders, affirming that the transactions constituted inter-state sales liable for tax under the Central Sales Tax Act, 1956, specifically under Section 3(a).