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TMI Blog2013 (7) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... the following substantial questions of law:- "(1) Whether in admitted facts of the case and legal position when Section 2(g) of the Central Sales Act includes 'transfer of goods' under hire purchase in the definition of sale, the issue of time of passing of property and place of delivery are irrelevant for the purpose of section 3(b) of the Central Sales Tax Act? (2) Whether the Tribunal misdirected itself in considering that in a hire purchase transactions there are two deliveries, namely, one from the assessee to the hirer from the inter-state stream and delivery of the hirer to himself, when in a case of hire purchase transaction all that is required under Section 3(b) is transfer of documents of title when the goods are in in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat property in the goods should pass on to the hirer at the time when endorsement of sale was made in the document of title. As such, the question of giving benefit of Section 3(b) of the Central Sales Tax Act did not arise. Thus, applying the decision of this Court reported in (1992) 86 STC 554 TVL. SUNDARAM INDUSTRIES v. STATE OF TAMILNADU, the claim of the assessee was rejected. The Assessing Officer further viewed that in a hire purchase agreement there were two sales, one by the dealer to the financier and the other by the financier to the intending purchaser. Thus, he rejected the claim of the assessee. While so assessing the turnover, penalty was also confirmed under Section 16(2)(a) of the Tamil Nadu General Sales Tax Act. Aggrieve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Apex Court referred to above. It is no doubt true that the point raised in the decision of the Apex Court arose under the Bengal Finance (Sales Tax ) Act as extended to the Union Territory of Delhi. Nevertheless, given the fact that the definition of 'sale' under the State enactment is pari materia with the definition of 'sale' under the Central Sales Tax Act, and that the issue considered therein also related to a case of hire purchase, the decision of the Apex Court would squarely apply to the case on hand. The Apex Court referred to the definition of sale under Section 2(g) and pointed out to the use of the two expressions viz., "transfer of property in goods" and "transfer of goods" and referred to the decision reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd when a hire purchase agreement is entered into there is transfer of goods on hire purchase which would not include, at that point of time, any transfer of property in the said goods. If the contention of the learned senior counsel for the appellants is accepted, the effect of that would be that the latter portion of the definition could be otiose. If the definition of Section 2(g) was to include within its ambit only that transfer which takes place at the time of purchase when the option is exercised, then it would not have been necessary to widen the scope of the definition to include transfer of goods on hire purchase and to provide for it separately." 6. The definition of 'sale' under the Central Sales Tax Act, as is relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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