Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 1994 (11) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1994 (11) TMI 335 - SC - VAT and Sales TaxWhether there was an obligation upon the purchaser to return the tins or was it a case where the return or non-return of the tins lay within the discretion and pleasure of the purchaser/ customer/ Held that:- Appeal allowed. As the transaction in question is neither a bailment nor a pledge. It was a composite transaction. It was to start with an entrustment which could result in a sale of tins in case of non-return of the tins. While entrusting the tins, the respondent took care to stipulate and receive the value of the tins and a little more-to be precise 20 per cent. If the tin was returned, well and good- the transaction remained one of entrustment. But if not returned within 3 months, it became a sale as per the terms of the transaction. The fact that the respondent was receiving back the tins even after the expiry of three months and returning the deposits was more by way of grace-probably a business decision-rather than a matter of right or an obligation.But once we hold that there was no such obligation, then the said trading receipt cannot be anything but sale price.
|