ACC LTD. vs STATE OF KERALA

The Supreme Court ruled that the sale of cement by Cochin Cement Limited to ACC Ltd. constitutes a 'first sale' under Section 5(2) of the Kerala General Sales Tax Act, 1963. The Court emphasized that the agreement's terms, including quality assurance and branding, do not alter the nature of the transaction as a sale. Consequently, the appeal was dismissed, affirming the Assessing Officer's decision regarding the sales tax liability.