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TMI Blog2013 (7) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... EDIT AND INVESTMENT CO LTD v. COMMISSIONER OF SALES TAX AND ANOTHER [2000 (8) TMI 1013 - SUPREME COURT OF INDIA] would squarely apply to the case on hand referring to the definition of sale under Section 2(g) and pointed out to the use of the two expressions viz., "transfer of property in goods" and "transfer of goods". The definition of 'sale' under the Central Sales Tax Act as however amended under Section 150 of the Finance Act, (No.20 of) 2002 with effect from 11.5.2002. Even therein, delivery of goods on hire purchase or in system of payment by instalments is treated as deemed sale. Considering the categorical pronouncement of the Apex Court on a similarly worded provision, which was also seen in the context of the provision of defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of title when the goods are in interstate movement?. 2. The assessee is a Government of India undertaking to promote small scale industries by providing financial and business assistance. In respect of machineries purchased from outside Tamil Nadu, the assessee effected sale while in transit. The assessee claimed exemption under Section 3(b) of the Central Sales Tax Act. The claim of the assessee was however reconsidered in the reassessment proceedings; ultimately, after giving opportunity to the assessee, reassessment order was passed, thereby, the Assessing Authority rejected the claim of exemption. The Assessing Authority viewed that the assessee entered into hire purchase agreement with the manufacturers in Tamil Nadu. The machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adu General Sales Tax Act. Aggrieved by the same, the assessee went on appeal before the Appellate Assistant Commissioner, who partly allowed the appeal by holding that penalty alone be set aside and confirmed the assessment. Aggrieved by the same, the assessee went on further appeal Tamil Nadu Sales Tax Appellate Tribunal. After referring to the provisions of Central Sales Tax Act and pointing out to the difference in the language of the definition of 'sale' under Section 2(g) of the Central Sales Tax Act, the Tribunal viewed that in the absence of transfer of property in goods, the assessee could not have carried out subsequent interstate sales under the Central Sales Tax Act by endorsing the documents of title to the goods. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and referred to the decision reported in [1961] 12 STC 489 INSTALMENT SUPPLY (PRIVATE) LIMITED v. UNION OF INDIA, and held that, ............. the definition in section 2(g) included not only what was compendiously described as a sale under the Sale of Goods Act, but also transactions, which, strictly speaking, are not sales, not even contracts of sale but only contain an element of sale which is the option to purchase and that is why the explanation to section 2(g) ended with the words be deemed to be a sale , thereby indicating that a legal fiction has been introduced into the concept of sale as ordinarily understood. It was clarified that the explanation included within its amplitude a mere transfer of goods without the transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Central Sales Tax Act, as is relevant for the year under consideration viz., 1991-92, reads as follows:- 2(g) Sale with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration and includes a transfer of goods on the hire purchase or other system of payment by instalments, but does not include a mortgage or hypothecation of or a charge or pledge on goods. 7. The said definition was however amended under Section 150 of the Finance Act, (No.20 of) 2002 with effect from 11.5.2002. Even therein, delivery of goods on hire purchase or in system of payment by instalments is treated as deemed sale. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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