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1988 (3) TMI 59 - SC - VAT and Sales TaxWhether there is any disposal of these goods in any manner otherwise than by way of sale within the State? Held that:- Disposal means transfer of title in the goods to any other person. The expression "dispose" means to transfer or alienate. It was formerly an essential word in any conveyance of land. See Jowitt "The Dictionary of English Law" and also Webster Comprehensive Dictionary (International Edn.) -Vol. 1, page 368. Clause (b) of the section requires that the goods in question should be transferred to some person otherwise than by way of sale. In this case, there was no evidence of any transfer at all, therefore, there was no 'disposal' of the goods as known to law. The High Court records that admittedly there was no transfer of the cashew shells, the lime shells or the consumed stores in this case. These were used by the assessee himself as fuel in the case of cashew shells for the maintenance of kiln. Sub-clause (b) of Section 5A(1) was, therefore, not applicable. In the background of the facts of this case, the High Court, in our opinion, was right. Appeal dismissed.
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