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2016 (12) TMI 1702 - HC - VAT and Sales TaxWorks contract - whether the transaction referred in the contract to make a serial and transferring the right over the serial would attract the definition of the term “goods” occurring in the Kerala General Sales Tax Act, 1963? Held that: - The question whether making a serial for valid consideration amounts to sale of goods or not, is more or less settled by a large number of decisions of the Apex Court and of this court. It is settled now that “goods” would include all kinds of movable and immovable property whether it be tangible or intangible. The vesting of copyright is different from divesting the ownership right in the property in which copyright subsists. The divesting of the ownership right essentially depends upon the nature of contract in relation to the transaction. The deemed transfer of copyright as contemplated in law itself will not result in transfer of ownership of the property. To understand transfer of ownership in a particular transaction for the purpose of sale, the court has to differentiate the terms and conditions of the contract. In this case as seen from the contract (clause 11), it was agreed that TV films and materials will become the absolute property of the Government with perpetual copyrights, distribution rights etc., only upon delivery of the film. If that be so, the contract can be easily comprehended as having the characteristics of a sale as contemplated under the Sale of Goods Act, 1930. The tribunal erred in construing the contract as a contract of service - the order of tribunal set aside and the order of the assessing authority restored.
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