TMI Blog2007 (3) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... -line lotteries, run by M/s. Playwin, Lotus, Smartwin and Fortune. It has been served with exhibit P12 series notices under section 17(3) of the Kerala General Sales Tax Act, 1963, proposing to collect licensing fee as contemplated under section 5BA of the said Act. So, this writ petition is filed by it, seeking a declaration that section 5BA is unconstitutional and also seeking to quash exhibit P12 series notices. The petitioner submits, in view of the Constitution Bench decision of the apex court in Sunrise Associates v. Government of NCT of Delhi [2006] 145 STC 576 (SC); [2006] 5 SCC 603, no tax can be collected in connection with the sale of lottery tickets. The said judgment dated April 28, 2006 is produced as exhibit P9 in this writ p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd articles (including those to be used in the construction, fitting out, improvement or repair of immovable property or used in the fitting out, improvement or repair of movable property) and every kind of property (whether as goods or in some other form) involved in the execution of a works contract, and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale. Actionable claim has been expressly excluded from the above definition of goods . Sale is defined in section 2(xxi) as follows: (xxi) 'sale' with all its grammatical variations and cognate expressions means every transfer, whether in pursuance of a contract or not, of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sense of the term but a sale of an actionable claim would not be subject to the sales tax laws. . . . A lottery ticket has no value in itself. It is a mere piece of paper. Its value lies in the fact that it represents a chance or a right to a conditional benefit of winning a prize of a greater value than the consideration paid for the transfer of that chance. It is nothing more than a token or evidence of this right. The court in H. Anraj [1986] 61 STC 165 (SC); [1986] 1 SCC 414, as we have seen, held that a lottery ticket is a slip of paper or memoranda evidencing the transfer of certain rights. We agree. . . . The question is, what is this right which the ticket represents? There can be no doubt that on purchasing a lottery ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
