M/S Xerox Modicorp Limited vs State Of Karnataka

The Supreme Court held that under Article 366(29A)(b) of the Constitution, the essence of a sale of goods requires a contract for the transfer of property in movables for a price. The Court clarified that the 46th Amendment allows for the taxation of parts of an inseverable contract but does not convert non-sales into taxable sales. The Court upheld the Karnataka High Court's decision that the amounts received for parts and services under maintenance agreements are subject to sales tax, affirming the Assessing Authority's determination of taxable turnover under the Karnataka Sales Tax Act.