Recovery for goods lost in transit is not taxable turnover where no sale or transfer of property occurred.

Amounts received as damages or recoveries for goods lost in transit could not be included in taxable turnover because there was no transfer of property to the railway or any other party. The levy applied only to sales, and in the absence of a sale no sales tax could arise. The loss of goods gave rise only to an actionable claim, which was outside the definition of goods. Accordingly, the recovery for the lost goods was not liable to sales tax.

---

---

Issues: Whether amounts received as damages or recoveries for goods lost in transit could be included in taxable turnover as sales of goods.

Analysis: The claimed amount related to goods lost in transit. The Court held that, on the facts, there was no transfer of property to the railway or to anyone else. It further held that the levy was one on sales alone, and that without a sale no tax could arise. The loss of goods gave rise only to an actionable claim, which was excluded from the definition of goods.

Conclusion: The amount received for the lost goods could not be treated as part of taxable turnover and was not liable to sales tax.

---