COMMISSIONER,DELHI VALUE ADDED TAX vs M/S ABB LTD.

The Supreme Court upheld the High Court's decision that the inter-State movement of goods by M/s. ABB Ltd. was incidental to a contract with the Delhi Metro Railway Corporation Ltd., thus qualifying for exemptions under Section 3(a) and Section 5(2) of the Central Sales Tax Act, 1956. The Court found that the High Court correctly interpreted the law, particularly the principles established in M/s. K.G. Khosla & Co. v. Deputy Commissioner of Commercial Taxes, Madras, and distinguished it from M/s. Binani Bros. (P) Ltd. v. Union of India & Ors. The appeal by the Commissioner of Delhi Value Added Tax was dismissed, affirming the High Court's ruling.