M/S. Tata Motors Ltd. Through Its Chief ... vs The Deputy Commissioner Of Commercial ...

The Supreme Court addressed the issue of sales tax liability concerning the free replacement of defective parts in motor vehicles during the warranty period. The Court held that the dealer is not liable to pay sales tax on the return of defective parts, as the customer does not incur any cost for the replacement, distinguishing the case from Mohd. Ekram Khan & Sons v. Commissioner of Trade Tax, U.P., Lucknow. The Court emphasized the principle of warranty and the consumer's right to free replacement, ultimately ruling in favor of the appellant dealer, M/s. Prerana Motors (P) Ltd.