TMI Blog1992 (3) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... axes, Bangalore, a clarification as to whether or not lottery tickets could be said to fall within the definition of a word "goods " for the purposes of commercial tax. The clarification was issued on 17th September, 1986. It only informed the appellant that tax is leviable on the sale price of lottery tickets, i.e., on the total amount received towards the sale of lottery tickets. The assessment of the appellant for the concerned assessment year was made accordingly and it was held that the decision in Anraj's case [1986] 61 STC 165 (SC); AIR 1986 SC 63, was inapplicable. The writ petition was filed to challenge the assessment order as also the said clarification. The learned Judge also took the view that the decision in Anraj's case [1986 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar to the schemes sponsored by each of the two States in this case, every participant is required to purchase a lottery ticket by paying a price therefor (the face value of the ticket) and such purchase entitles him not merely to receive or claim a prize in the draw, if successful but before that also to participate in such draw. In other words, a sale of a lottery ticket confers on the purchaser thereof two rights (a) a right to participate in the draw and (b) a right to claim a prize contingent upon his being successful in the draw. Both would be beneficial interests in movable property, the former in praesenti, the latter in futuro depending on a contingency. Lottery tickets, not as physical articles, but as slips of paper or memoran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the right to participate in the draw which takes place on the sale of a lottery ticket would be a transfer of beneficial interest in movable property to the purchaser and, therefore, amounts to transfer of goods and to that extent it is no transfer of an actionable claim; to the extent that it involves a transfer of the right to claim a prize depending on a chance it will be an assignment of an actionable claim." Based upon certain passages annotated in "Words and Phrases", Permanent Edition, Volume 25A, it was held that not one but two distinct rights were transferred to the purchaser of a lottery ticket and it was not possible to accept the contention that the two together constituted a single right. Upon this aspect it was conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
