TMI Blog2020 (2) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... ses tax at different points in respect of sales, having regard to the purpose of the sale, it is unreasonable to assume that the Legislature contemplated different categories of transactions when the taxable event is at the purchase point. Whether it is sale or purchase the transaction is the same. If it was a transfer inter vivos, in the case of a sale, it must equally be so in the case of a purchase. Context, consistency and avoidance of anomaly demand a restricted meaning. That it must only mean transfer is also made clear by the nature of the transactions excluded from the acquisition, namely, mortgage, hypothecation, charge or pledge-all of them belong to the species of transfer. We must, therefore, hold that the expression acquisitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Malnad Areca Processing and Marketing Limited vs. Deputy Commissioner of Commercial Taxes (Assessment) and Others , reported in (2008) 11 SCC 536. 4. This very Industrial Policy, 1996 was considered by the Court. The Court opined that the same provides for exemption only in respect of sales tax and not for purchase tax as such. The relevant discussion in this behalf can be discerned from paragraph Nos.15 to 19 of the said decision, which read thus: 15. In the government order what is provided to new industrial units is the sales tax exemption or deferral of sales tax under the Act and the Central Sales Tax Act, 1956 (in short the CST Act ). 16. Clause 5 of the Government Order dated 15-3-1996 of the Industrial Policy, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context in which these expressions are used, they only mean sales tax holiday or exemption from payment of sales tax for number of years specified, depending on where the tiny or small-scale industry is located. Sales tax refers to any tax which includes within its scope all business of sale of goods specified in the Schedule. Similarly, sales tax deferral only means the aforesaid industries are entitled to collect tax but they need not pay sales tax collected immediately to the State. If understood in this manner and thereafter the New Industrial Policy of the State Government for the years 1993-1998 and the exemption notification is looked into, the only conclusion that can be drawn is, what is exempted under the notification iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court in Devi Das Gopal Krishnan (supra), in particular, paragraph 24, which reads as under: Bearing that in mind let us look at clause (ff) in Section 2 of the Principal Act in which the said clause was inserted. The ingredients of the definition of purchase are as follows : (i) there shall be acquisition of goods; (ii) the acquisition shall be for cash or deferred payment or other valuable consideration; (ii) the said valuable consideration shall not be other than under a mortgage, hypothecation, charge or pledge. Clause (h) of Section 2 defines thus : sale means any transfer of property in goods other than goods specified in Schedule C for cash or deferred payment or other valuable consideration but does not include a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration is an ingredient of 'purchase . But a closer scrutiny compels us to give a restricted meaning to the expression acquisition and price . Acquisition is the act by which a person acquires property in a thing. Acquire is to become the owner of the property. One can, therefore, acquire a property either by voluntary or involuntary transfer. But the Sales Tax Act applies only to sale as defined in the Act. Under clause (ff) of Section 2 of the Act it is defied as a transfer of property. As purchase is only a different, aspect of sale, looked at from the stand point of the purchaser, and as the Act imposes tax at different points in respect of sales, having regard to the purpose of the sale, it is unreasonable to assume that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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