TMI Blog1990 (11) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1977-78 on the ground that it is the turnover coming under rule 6(d) of the Tamil Nadu General Sales Tax Rules (hereinafter referred to as "the Rules"). The said rule provides that in determining the taxable turnover, amounts realised by a dealer by sale of his business as a whole shall be deducted from the total turnover of the dealer. But, it is clear that the Tribunal is wrong in trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er into collaboration agreement with M/s. Chicago Pneumatic Tool Company Ltd., of U.S.A., for which it has become necessary to initially float a private limited company to be a wholly owned subsidiary company of the appellants. Accordingly in the meeting of the Board of Directors of the appellants' company on March 19, 1977, a resolution was passed to float the wholly owned subsidiary company whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied. In the decision in State of Tamil Nadu v. Thermo Electrics [1977] 39 STC 317 (Mad.) also it was reiterated that rule 6(d) contemplates transfer of the business as a going concern and not as a transfer of assets alone. 2.. In answer to another question that was posed by one of us, namely, whether the above transaction would not be a sale because there was no money consideration as such bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods as in the present case. The learned counsel referred to a decision of the Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430. In that case, the Supreme Court did not lay down that if there is a transfer of goods for valuable consideration, other than cash, the transaction cannot be regarded as sale. What the Supreme Court meant to lay down was that a valuable cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re exchange or barter." In the present case also, the shares given in lieu of the plant and machinery, etc., are to be taken as "cancellation of one debt by another", as held in the abovesaid [1984] 55 STC 371 (Mad.) (Premier Electro Mechanical Fabricators v. State of Tamil Nadu). 3.. Therefore, this tax revision case is allowed and the deletion by the Tribunal, of the abovesaid turnover is se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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