M/S. MADRAS CREDIT & INVESTMENT LTD. vs STATE OF KERALA

The Supreme Court addressed the issue of sales tax applicability on goods purchased from outside Kerala and delivered within the state under a hire purchase agreement. The Court held that the sale of goods was deemed to occur within Kerala, thus making it subject to local sales tax, as per the provisions of the Kerala General Sales Tax Act. The Court upheld the Assessing Officer's decision to levy sales tax on the appellant, affirming that the transaction constituted a sale within the state despite the goods being sourced from outside.