In Brief
A motor vehicle dealer in Kerala and Pondicherry was penalized for allegedly failing to maintain true accounts and evading sales tax by wrongly showing sales at its Pondicherry branch instead of at its Kerala head office. The Supreme Court held that a motor vehicle remains unascertained goods until the dealer hands over possession at the registration authority's office. Since the vehicles were registered at Mahe (Pondicherry), the sale occurred there, not in Kerala. The dealer did not violate tax law. The Court affirmed the High Court's decision setting aside the penalty, finding the evidence raised only suspicion, not conclusive proof of wrongdoing.
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