State Of H.P. And Ors vs Gujarat Ambuja Cement Ltd. And Anr

The Supreme Court addressed the liability of Gujarat Ambuja Cement Ltd. and Associated Cement Ltd. to pay purchase tax on royalties under the Central Sales Tax Act, 1956 and the Himachal Pradesh General Sales Tax Act, 1968. The Court held that the royalty payments made by the companies do not constitute a sale under the definition provided in the relevant statutes, thereby exempting them from purchase tax liability. The judgments of the Himachal Pradesh High Court were set aside, favoring the respondents in the appeals.