TMI Blog1976 (3) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... s 5 and 6 of the terms and conditions of the scheme read as follows: "5. Any person sending M.O. or bank draft for Rs. 45 along with coupon duly filled up will receive the article that is mentioned in the coupon together with three sets of (9) coupons. 6.. Coupons should be returned duly filled within three months of their receipt. Coupons received after three months will not be attended to. The pamphlet further states that the member, who subscribes to the scheme can get any one of the following articles for Rs. 5. Eversilver articles (1) Tiffin carrier 1 (11) Idilithattu (with moodi) 1 (2) Kothu chatti 1 (12) Kudam 1 (3) Sambar vali 1 (13) Kuthuvilakku 1 (4) Kuja 1 (14) Terylene shirt (sizes 28" to 40") 1 (5) Meals plates 3 (15) Suit-case (with locker) 1 (6) Davara tumbler 4 (16) Shirting cloth (best quality) 4 (7) Plain tumblers 8 (17) Nylex saree 1 (8) Anna koodai 1 (18) Terrycotton saree (jacket pieces) 4 (9) Adukku set (containing four) 1 (19) Electric iron 1 (10) Cup and saucer 5 (20) Timepiece 1 The coupon referred to in the scheme is a printed order form, which is as follows: "ORDER FORM No. 17435 D. Regd. No. SRI SRINIVASA SALES CIRCULATI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the article which he had chosen in the order form. That article is sent to A with a covering letter, which is as follows: "We are very glad to note that you have circulated our scheme by a time and thank you very much for the same. According to your request, today we have despatched your required article No by V.P. insured parcel for Rs towards the expenses of packing and postal charges of the article. You please receive your article by paying Rs and write a letter to us about your opinion." If any one of B, C or D does not honour the V.P.L., and receive the three coupons sent to them, A becomes disentitled to receive the article, though the other two, who had honoured, will have a series in their name if they are again able to sell, say for B1, B2 and B3, C1, C2 and C3 and so on and complete the circle. Thus, the chain of B and C could go on. If there is no break, the chain goes on endlessly. During the assessment year 1967-68, the value of the articles that was so supplied under this scheme to various persons amounted to Rs. 1,36,665.00. The purchase value of these articles was found to be Rs. 1,03,709.25. The assessing officer considered that there was a sale of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract, that it must be supported by money consideration, and that as a result of the transaction property must actually pass in the goods. Unless all these elements are present, there can be no sale. Thus, if merely title to the goods passes but not as a result of any contract between the parties, express or implied, there is no sale. So also if the consideration for the transfer was not money but other valuable consideration, it may then be exchange or barter but not a sale. And, if under the contract of sale, title to the goods has not passed, then there is an agreement to sell and not a completed sale." The Supreme Court had also held in this decision that the legislatures were competent to legislate for levy of tax only on transactions which were sales within the meaning of the Indian Sale of Goods Act, 1930. Again, in New India Sugar Mills Ltd. v. Commissioner of Sales Tax, Bihar[1963] 14 S.T.C. 316 (S.C.)., the Supreme Court observed: "In popular parlance 'sale' means transfer of property from one person to another in consideration of price paid or promised or other valuable consideration. But that is not the meaning of 'sale' in the Sale of Goods Act, 1930. Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of Rs. 15 at a later stage towards the value of the three more coupons, which they are entitled to pass on, were not on behalf of the person from whom they purchased the first coupon. In the illustration, which we have given in the earlier part of the judgment, the payment by B, C and D honouring the V.P.L. for Rs. 16 sent to them each, is not on behalf of A, but it is on their own behalf and on their own account though such payment entitles A to receive the article. Thus, so far as the company is concerned, before they could part with the article to A, they should have received Rs. 65 in all, Rs. 20 from A and Rs. 15 each from B, C and D. The payment of Rs. 45 by B, C and D was on their own behalf, which entitles them to canvass three more purchasers and obtain a benefit for themselves. Even in the order form, A, the first man in the series so far as the first circle is concerned, is designated as canvasser. Thus, A gets the article for the sum of Rs. 20 paid by him of which he was able to reimburse Rs. 15 in cash by sale of the three coupons and canvassing three others to honour the V.P.Ls. sent to them. The detriment to A is thus only Rs. 5, but he gets the article not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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