Karya Palak Engineer, Cpwd, Bikaner vs Rajasthan Taxation Board, Ajmer & Ors

The Supreme Court addressed appeals concerning the Rajasthan Sales Tax Act, 1994, and the applicability of Article 285 of the Constitution regarding the State's authority to levy sales tax on the Union's transactions. The Court held that the supply of materials by the Union to contractors constituted a sale under the Sales Tax Act, rejecting the argument that the contractors were merely custodians of the materials. The Court affirmed the High Court's ruling that the sales tax imposed was not a direct tax on the Union's property as per Article 285, thus upholding the tax's validity.