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2008 (2) TMI 837 - HC - VAT and Sales TaxWhether the learned Tribunal having regard to the definition of "sale" in section 2(30) of the 1994 Act read with clause (29A) of article 366 sub-clauses (e) and (f) of the Constitution of India had decided correctly that the members' club like the first respondent herein comes within the purview of the aforesaid definition in view of the mutuality and reciprocity amongst the members in the club? Held that:- Upon careful reading of the Constitutional amendment as well as the provision of the definition of "sale" under the 1994 Act it is clear that supply of food, drinks and beverage has to be made upon payment of consideration either in cash or otherwise to make the same exigible to tax. To clarify it one must supply the beverage in consideration of paying the value thereof by the members. In clause (f) it is made clear that if such supply of aforesaid things is effected either on immediate payment of cash or deferred payment or valuable consideration (emphasis(1) supplied) which may be of various nature only then the tax can be levied. Mr. Bajoria has rightly contended that going by the language in the definition of "sale" in the Act as well as the amended provision of the Constitution the concept of mutuality is not obliterated. In the clauses (e) and (f) had there been specific mention of supply irrespective of payment, the provision of the said Act would have been applicable and the mutuality concept could be said to have been obliterated. Application dismissed.
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