Sales tax on free replacement of defective parts during warranty period : SC refers to Larger Bench

M/s. Tata Motors Ltd. Vs Deputy Commissioner Of Commercial Taxes (Supreme Court of India)

Conclusion: In case of warranty for the supply of free spare parts, once the replacement was made and the defective part was returned to the manufacturer, whether sales tax would be payable on such a transaction relating to the spare part, based on a credit note, which may be issued for the said purpose to dealer by the manufacturer was referred to Larger Bench to decide.

Held: Assessee was a dealer of Tata Motors. Sales Tax was paid on the vehicles sold. T

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