DHAMPUR SUGAR MILLS LTD. vs COMMISSIONER OF TRADE TAX, U.P.

The Supreme Court addressed whether the adjustment of molasses price against the licence fee constitutes a sale under the Uttar Pradesh Trade Tax Act, 1948. The Court held that such an arrangement does not amount to a sale but rather a barter or exchange, thus not attracting trade tax. The judgment of the High Court was upheld, confirming that the transaction was not taxable under the Act.