COSMOPOLITAN CLUB vs THE STATE OF TAMIL NADU .

The Supreme Court held that the Madras High Court's decision regarding the liability of a members' club to pay sales tax under the Tamil Nadu General Sales Tax Act, 1959, was not conclusive due to the lack of determination on the relationship between the club and its members concerning the supply of food and drinks. The Court emphasized that if the club acts merely as an agent for its members, no sale occurs, referencing the definition of 'sale' in the Sale of Goods Act, 1930. The matter was remanded to the Tribunal for factual determination of the relationship and the implications of the amendments to Section 2(n) of the 1959 Act, particularly in light of the 46th Amendment of the Constitution.