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1996 (10) TMI 379 - SC - VAT and Sales TaxWhether under the facts and circumstances of the present case, the transfer of article by the respondent-assessee to its customers under the scheme floated by it constitute a sale against payment of price of that article? Held that:- Appeal allowed. All the attributes, characteristics and requirements of a sale are present in the transaction. In fact the transaction is so designed and framed by the company by adopting a circuitous method for sale of their goods which amounts to nothing but a sale, and the same is liable to assessment under the Act. This view is further strengthened from the fact that during the relevant assessment year the respondent-company sent articles to its various customers under the scheme of the value of Rs. 1,36,665, which were purchased by the respondent-company for a sum of Rs. 1,03,709.25 and, thus, earned a profit to the tune of Rs. 32,955.75. The business so run by the respondent is with a view to earn profit out of the sale by adopting a circuitous device with a view to evade the payment of tax. Thus the High Court, therefore, was not justified in taking the view that it was not a sale transaction assessable to tax.
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