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 does not convert non-sale transactions into taxable sales, emphasizing that the statutory definitions in the Karnataka Sales Tax Act necessitate an identifiable price for the transfer of property. The appeal against the Karnataka High Court's judgment was dismissed, affirming the Assessing Authority's decision to include amounts received under service agreements as taxable sales.