TMI Blog1978 (8) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent under the Central Sales Tax Act, even though the primary transaction is covered by form D?" The U.P. Government owned a cement factory known as "Churk Cement Factory". It thereafter decided to establish another factory at Dalla. Cement was required for constructing the Dalla Cement Factory, and the State Government decided that cement be supplied from the "Churk Cement Factory". The Churk Cement Factory started billing the Dalla Cement Factory for supplies of cement. The Dalla unit paid for the cement supplied by the Churk Cement Factory. Although, the Churk Cement Factory had billed the Dalla Cement Factory for the supply of the cement, and had received the price thereof, it took up the stand during the assessment proceedings that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een defined in section 2(i) of the Act. According to this provision, it means the aggregate amount for which goods are supplied or despatched by way of sale. "Sale" is defined in section 2(h) in the following manner: "(h) 'Sale' means within its grammatical variations and cognate expressions, any transfer of property in goods for cash or deferred payment or other valuable consideration................." It will be seen that before a transaction can be taxed and included in the turnover of a dealer, it has to be a sale. Although the word "sale" as defined in section 2(h) does not specifically mention that the transaction must be between the two entities, but inasmuch as it contemplates transfer of property, it is obvious that before a tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the transaction arises out of the fact that before a transaction can be a sale within the meaning of section 2(h) of the U.P. Act, there must be a transfer of property. Transfer of property, unless a particular statute expressly provides otherwise, contemplates passing of title from one person to another. It has, as such, to be held that even under the U.P. Act, two entities must be involved before a transaction would fall within the category of "sale". Sri V.D. Singh, with his usual ingenuity, urged that the transaction in question should not be treated other than sale, because the assessee had billed the Dalla Cement Factory and has charged the price of cement supplied by it. The billing of Dalla Cement Factory and the payment of price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready been sufficiently stated earlier. The standing counsel strongly relied on explanation II(i) of section 2(i) of the Act, which defines turnover. We will omit reference to the meaning of turnover as it is not relevant, and confine ourselves to explanation II of section 2(i). Explanation II runs thus: "Explanation II.-Subject to such conditions and restrictions, if any, as may be prescribed in this behalf,(i) the amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof, other than cost of freight or delivery, or cost of installation when such cost is separately charged." Sri V.D. Singh, the standing counsel, urged that as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
