MORIROKU UT INDIA PVT.LTD. vs STATE OF U.P..

The Supreme Court held that the amortisation cost of toolings supplied free of cost by a customer is not includible in the sale price of auto components for the purposes of sales tax under Section 3 of the U.P. Trade Tax Act, 1948. The Court distinguished between sales tax and excise duty, asserting that the Department's attempt to equate the two was incorrect. The appeal by Moriroku UT India (P) Ltd. was allowed, overturning the High Court's decision that upheld the tax imposition.