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TMI Blog2008 (12) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment if made in instalment and tax accordingly deposited? Held that:- We answer question No. 2 as Sale of forest, in question, completed not at the fall of the hammer, but on expiry of the 30-day period from the date of auction. This 30-day period from the date of sale of auction expired on November 5, 1978, and, therefore, the sale was complete on November 6, 1978. Coming to question No. 1. When the sale was complete on November 6, 1978, the rate of tax prevailing on that date, i.e., 10 per cent of the sale proceeds was applicable and the liability of the dealer, i.e., Divisional Forest Officer, was to pay tax at the said rate. Question No. 3 becomes immaterial and irrelevant in view of our answer to question No. 2. - STR No. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to consider and examine the bids and to accord necessary sanction, and in the meanwhile, bidder(s) could withdraw the bids. It appears that the highest bid was ultimately accepted. At the time when the auction took place and also up to the date of expiry of 30 days period, available for withdrawal of the bid by the bidder and sanction of the bid by the competent authority, rate of sales tax was 10 per cent of the sale consideration. This rate was revised to 25 per cent with effect from February 1, 1979. It appears, sanction to accept the bid was accorded in the month of March, 1979 and the lease deed, on behalf of the Forest Department, was also executed in the month of March, 1979, though on behalf of the highest bidder, the lease deed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the sales tax authorities. We would answer question No. 2 first, because answer to the other two questions, i.e., question Nos. 1 and 3, depends upon its answer. Admittedly, it was one of the conditions of the auction that the highest bid, which in technical terms means an offer, was to remain open for a period of 30 days from after the date of auction to enable the competent authority to consider and convey the sanction, and in the meanwhile, the highest bidder(s) could withdraw the bid (offer). That means, the sale was not complete at the fall of the hammer, but it was to get completed on expiry of the 30-day period for which the bid was to remain open with liberty to the highest bidder to withdraw it and to enable the competent au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms and conditions of auction and the provision of section 64(2) read with section 62 of the Sale of Goods Act, the sale stood completed on expiry of the 30-day period from the date of auction. The date of auction was October 6, 1978. So, the sale stood completed on November 6, 1978. Mere fact that the sanction was accorded by the competent authority in March, 1979, or the lease deed was executed on behalf of the State in the month of March, 1979, would not affect the date of completion of sale, in view of the aforesaid provisions of the Sale of Goods Act. So, we answer question No. 2 in the following terms: Sale of forest, in question, completed not at the fall of the hammer, but on expiry of the 30-day period from the date of auction. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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