COMMR.OF COMMERCIAL TAXES vs CHITRAHAR TRADERS

The Supreme Court upheld the decision of the Madras High Court, affirming the dismissal of the writ appeal filed by the Neyveli Lignite Corporation (NLC) against the respondent regarding the sale of scrap machinery. The Court clarified that the sales tax applicable on the sale of the condemned plant and machinery was correctly levied at 12% with a surcharge of 5%, as per the terms of the e-auction agreement. The Court emphasized that the 'as is where is' basis of sale did not alter the tax obligations outlined in the acceptance letter, thereby reinforcing the contractual terms under Section 73 of the Sale of Goods Act, 1930.