TMI Blog2020 (8) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... KOTHARI And THE HON'BLE MR.JUSTICE R.SURESH KUMAR For the Petitioner : Mr. V. Srikanth For the Respondent : R. Swarnavel Govt. Advocate (Taxes) ORDER [ Order of the Court was made by DR. VINEET KOTHARI , J ] The learned counsel appearing for the petitioner/assessee had submitted that the issues involved in the present case is covered by a decision of the Honourable Supreme Court. 2. The assessee claims exemption on the sale of REP licence, contending that the same did not come within the definition of 'goods', therefore the sale was not taxable. 3. The relevant extract against the assessee, as found in paragraph 5 of the impugned order, reads as follows; '5. The appellant had claimed exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which replaced REP licences) were `goods'. It is indeed true that the Constitution Bench in Sunrise did not approve the decision in Vikas insofar as it gave their free marketability as an additional reason to hold that REP licences were not actionable claim but `goods' properly so called. The Constitution Bench held that the assumption that actionable claims were not transferable for value was quite unfounded and the conclusion drawn on that basis was quite wrong. In paragraphs 39 and 40 of the decision, the Sunrise decision gave illustrations of a number of actionable claims which are transferable. 46. But to our mind that does not in any way change the position insofar as REP licenses are concerned. While examining the three- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, (iii) right to recover insurance money, (iv) a partner's right to sue for an account of a dissolved partnership, (v) the right to claim the benefit of a contract not coupled with any liability, (vi) a claim for arrears of rent and (vii) a right to the credit in a provident fund account are all indeed transferable for consideration but none of these is a market commodity. The holder of any of the above rights or claims may or may not be able to find a ready buyer at a given time; conversely a prospective buyer may not find any of the above rights or claims available for purchase by going to the market at any time. Contrary to this, REP licenses had always a market, that is to say, there were people willing to sell and others willing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2007 especially made elaborate arguments to bring out the points of distinction between REP licence and DEPB. But before proceeding to examine what is DEPB and how far it is different from REP licence it will be useful to take a look at the provisions of law under which the present cases arise and to establish their similarity with the statutory provisions that came up for consideration in Vikas and Sunrise. As noted above, the present appeals arise under the Delhi Sales Tax Act, 1975, the Kerala General Sales Tax Act, 1963 and the Bombay Sales Tax Act, 1959. ' 5. In view of the settled legal position, now we do not find any merit in the present writ petition filed by the assessee and the same is accordingly dismissed. There shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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