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TMI Blog1970 (3) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... diamond which has since come to be known as "Vijay diamond". It is said that next to koh-i-noor this was the biggest diamond ever found. When sold by public auction, it fetched Rs. 4,12,163. After deducting the royalty due to the Government under the rules, the balance was paid to the assessee. The sales tax authorities initiated proceedings for assessing sales tax. The assessee contended that he was not a "dealer", nor was there any "sale" of such a nature as to create the liability for payment of sales tax. 3.. Both these contentions were not accepted by the assessing authority, nor by the first appellate authority. However, they found favour with the second appellate authority, that is, the Board of Revenue. 4.. It was urged on behal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of the assessee is of selling or supplying a particular commodity, sale of which is subject to tax, he cannot be regarded as a dealer in relation to that commodity and is not liable to be taxed under the Act for any sale of such commodity effected by him. There are no facts or circumstances on the record to show that the assessee was a dealer within the meaning of the above definition. Performance of a single act is not enough. It is a matter of common knowledge that a person may operate diamond mining for years together and may not be able to find a single diamond. The view we take finds support in State v. Bengal Nagpur Cotton Mills[1961] 12 S.T.C. 333; 1961 J.L.J. 12; 1961 M.P.L.J. 129., Commissioner of Sales Tax, M.P. v. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or joint property in which is transferred from the seller to the buyer; and (4) there must be price in money paid or promised. A contract of sale thus postulates exercise of a volition on the part of the contracting parties. A transaction by which title to goods passes by compulsion is not a sale of goods as contemplated by the Sale of Goods Act. The mere use of the word "sale" will not make it a sale for the purposes of the Sales Tax Act. It is necessary to look at the substance of the transaction and if it is found that there was no agreement between the parties, it is not a sale, although the price is payable for the goods delivered and although the property passes for valuable consideration. See New India Sugar Mills Ltd. v. The Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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