9911796707
TMI Blog1968 (10) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... point and have been heard together. The assessee has been charged to sales tax on his transactions of sale of gold jewels. But we are concerned with the assessment years 1959-60 to 1963-64; except for the year 1963-64, it is a case of re-assessment for the other years. The assessee's case that he received gold with which he made jewels and supplied the same to the customers after collecting the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as entry 54 of List II in the Seventh Schedule to the Constitution should be understood in the light of the legislative practice in relation to sale of goods both in England and in India. Venkatarama Aiyar, J., speaking for the Court stated: "Thus, according to the law both of England and of India, in order to constitute a sale it is necessary that there should be an agreement between the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of related provisions in the Madras General Sales Tax Act, 1959. Can it be said that gold is in the nature of cash? What is in the nature of cash need not necessarily be cash itself. Money is not necessarily confined to coins or currency notes. We are inclined to think that it has a wider connotation and sense. The entire monetary system both national and international is based on gold and silv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not carry the sense of cash or currency. Gold being, therefore, in the nature of money, as we are inclined to understand the expression, payment by gold may be regarded, in our opinion, as a payment in the nature of cash or as a money consideration in the context of sale of goods. Govinda Menon, J., had to consider a similar case in jayarama Chettiar, In re[1948] 1 S.T.C. 168., and the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in that way too, the assessments or re-assessments on the view that the assessee effected sales of gold jewels, have to be accepted as valid. In all these cases, the revenue has imposed penalties. In the particular circumstances of this case, we are inclined to think, especially in view of the fact that the question we have decided is not entirely free from doubt, the levy of penalty was not jus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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