M/S. RAPTI COMMISSION AGENCY vs STATE OF U.P. .

The Supreme Court upheld the constitutional validity of Section 8-E of the Uttar Pradesh Trade Tax Act, 1948, which mandates tax deduction on purchases. The Court ruled that the provision applies to intra-State transactions, despite the appellant's argument that the transactions were inter-State and thus beyond the State's legislative competence. The Court clarified that the definition of 'dealer' under Section 2(c) does not exempt the appellant from liability to pay purchase tax under Section 3(1) of the Act, affirming the High Court's decision.