National Aluminium Co. Ltd vs The State of A.P. & Ors

The Supreme Court addressed the applicability of the Andhra Pradesh General Sales Tax Act, 1956 to the transfer of Duty Entitlement Pass Book (DEPB) licenses by National Aluminium Co. Ltd. The Court held that the transactions involving DEPB licenses, which were sold as inter-state sales, do not attract local sales tax as the sales occurred outside the state of Andhra Pradesh. The Court emphasized that the mere registration of the licenses at Visakhapatnam Port does not constitute a local sale under the Act, thereby ruling in favor of the appellant.