M/S. Madras Credit & Investment Ltd vs State Of Kerala

The Supreme Court upheld the High Court's decision affirming the Sales Tax Appellate Tribunal's ruling that the assessee, a financier, is liable to pay sales tax on hire purchase transactions involving goods purchased from outside Kerala, as per Section 3(a) of the Kerala General Sales Tax Act. The Court clarified that the sale occurred within the state upon delivery to the customer, thus constituting a taxable event. The Court rejected the appellant's argument that the sale was an inter-State transaction not subject to Kerala tax.