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2006 (5) TMI 182 - SC - VAT and Sales TaxWhether the adjustment of price of molasses from the amount of licence fee would amount to sale within the meaning of the Uttar Pradesh Trade Tax Act, 1948? Held that:- Appeal dismissed. For construction of the words "sale of goods", now the court is not necessarily required to fall upon the definition of sale of goods, as contained in the Sale of Goods Act, 1930. It has to be governed by its enlarged definition under clause (29A) to article 366 of the Constitution of India. Once an essential component of sale takes place, sales tax would, indisputably, be payable. By reason of such an arrangement by the parties, the State is not creating a new taxable event nor imposing a new tax which was unknown in law. In fact, the transaction entered into by the parties even does not provide for any camouflage to evade tax. They are clear and unambiguous. Therefore, are of the opinion that the High Court cannot be said to have committed any error in passing the impugned judgment. The contentions of the appellant that having regard to the transaction entered into by and between the parties and no sale having taken place, they are not liable to pay any tax, will not be correct. Non- filing of the appeal against the said order dated July 30, 1991, would not take away the effect of order of assessment passed as against the appellant by the assessing authority.
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