TMI Blog1988 (12) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... section 46(2) of the Act. Whether the Revenue was entitled to forfeit the money paid on account of sales tax, or whether the assessee/dealer was entitled to claim refund, would be gone into in the said assessment/refund proceedings. We direct that the said proceedings should be completed as expeditiously as possible. - Civil Appeal No. 4345 of 1988, - - - Dated:- 9-12-1988 - SABYASACHI MU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1965] 16 STC 213, wherein it was found that the State Legislature when it proceeds to legislate either under entry 48 of List II of the Seventh Schedule to the Government of India Act, 1935, or under entry 54 of List II of the Seventh Schedule to the Constitution, can only tax "sale" within the meaning of that word as defined in the Indian Sale of Goods Act, 1930. It was further held that hire-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable event had not taken place; it could only be exigible when the option had been exercised and all the terms of the agreement fulfilled and the sale actually took place. Thereafter, in the instant case, the respondent asked for refund of sales tax paid on the ground that the sale was completed only when the last instalment stood paid and the option to purchase, thus finally exercised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complete when the agreement was entered into between the respective parties, and later on they claimed refund. The High Court had quashed the said notices for both, i.e., for imposition of penalty and forfeiture. Our attention was drawn to the observations of this Court in R.S. Joshi, Sales Tax Officer v. Ajit Mills Ltd. [1977] 40 STC 497; [1978] 1 SCR 338. After considering the facts and the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id assessment/refund proceedings. We direct that the said proceedings should be completed as expeditiously as possible. We are, however, not expressing any opinion on the correctness or otherwise of the High Court's observations on the aspect of forfeiture in the judgment under appeal. The appeal is allowed to the extent indicated above. Appeal partly allowed. - - TaxTMI - TMITax - CST, VA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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