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2010 (2) TMI 1057 - HC - VAT and Sales TaxWhether the petitioner would be liable to pay tax under the Act 2002 in respect of the amount towards the instalments received after September 15, 2004 though the agreements were entered prior to September 15, 2004? Held that:- When the amendment makes certain transaction as "sale" by deeming provision, this concept can be pressed into service for the purpose of taxation as well, viz., at what point of time "sale" is to be inferred for the purpose of taxation. It is this fiction, which has created section 3(b) as well. According to us, this is the only harmonious construction, which can be given to the two provisions so that both the provisions are given due importance. Arguments of the learned counsel for the petitioner are predicated on the traditional concept of "sale", which was the position prior to the constitutional amendment. We may reiterate that the scope of this writ petition is to challenge the vires of section 3(b) of the Act, 2002. This challenge is made only on the ground that it is ultra vires the provision of section 2(n) which, pointed out above, is not permissible. W.P. dismissed.
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