9911796707
TMI Blog2001 (4) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... over at Rs. 8,87,205. The check-up of accounts revealed that the assessee had issued delivery challan No. 152 dated February 25, 1989 and delivered one re-processing extruder for Rs. 1,35,200 to one S.A.R. Plastic Cainds, Chennai. But the sale bills were not raised till March 31, 1989. Though the delivery was effected on February 25, 1989, the sale bill was raised only in the month of May, 1989. As the turnover shown was below Rs. 10 lakhs, the assessing authority took the view that the sale effected by delivery challan dated February 25, 1989 was not brought to account, otherwise, the turnover would exceed Rs. 10 lakhs, attracting additional sales tax. The assessing authority therefore added the value of the goods supplied under the challa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As a matter of fact, the assessee contended before the first appellate authority that the goods were returned by the customer and therefore, the sale was not brought to accounts; and in the month of May, 1989, the same goods were resold to the customer and for the sale price, the bill was raised and brought to the books of accounts in the next assessment year. Even though before the assessing authority, it was contended that as the price was not settled between the parties, sale bill was not raised in February, 1989, the assessee took a different contention before the Appellate Assistant Commissioner that the goods were returned and therefore, sale bill could not be raised. However, before the second appellate authority, this plea was giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had raised delivery challan dated February 25, 1989 for the supply of certain machineries to their customer and the price also is quoted in the delivery challan and the goods were supplied to the customer who had accepted delivery of the goods, the property in the goods were transferred and the sale is completed even if it is taken that the sale price was not finalised. 5.. Section 2(n) of the Tamil Nadu General Sales Tax Act, 1959 defines "sale" as follows: "Section 2(n): 'Sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods (other than by way of a mortgage, hypothecation, charge or pledge) by one person to another in the course of business for cash, deferred payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale is over. In this case, as mentioned above, the goods have been delivered by the assessee to their customer-S.A.R. Plastic Cainds, proving the transfer of property in the goods. Secondly the valuable consideration for such transfer also is accepted, though the payment was not made immediately for the reason that price was not settled. The assessee has filed the letter dated March 10, 1989 written by the customer (page 7 of the new type-set) wherein the customer has mentioned that they had taken delivery of the machineries as per the delivery challan dated February 25, 1989 but regarding the payment, there is some dispute in the price which would be settled in the next month and after settling the price, they would receive the invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent between them, and (5) the price being the consideration for the transfer of property under the agreement. So, these five elements are required to complete the sale according to this decision. The learned counsel for the respondent Thiru Sivanandam concedes that all the four elements are available in this case, except the fifth element, namely, price. The High Court, in the above decision would mention "price being the consideration for the transfer of property" indicating that there should be consideration for the transfer, as required under section 2(n) of the Tamil Nadu General Sales Tax Act, 1959. With the risk of repetition, it is to be mentioned that the customer in his letter dated March 10, 1989 has agreed to pay the consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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