Barter of bullion for gold ornaments is not a sale; ejusdem generis limits "other valuable consideration" under sales tax law.

Bullion exchanged for ready-made gold ornaments was treated as an exchange or barter, not a sale, under section 2(h) of the U.P. Sales Tax Act. The Court held that "other valuable consideration" must be read ejusdem generis with cash or deferred payment and does not extend to barter pure and simple. It further noted that the concept of sale under the Sale of Goods Act was not enlarged merely because bullion formed stock-in-trade and was used in manufacturing and exchange. The transaction was therefore outside the sales tax net.

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Issues: Whether bullion given by a dealer in exchange for ready-made gold ornaments manufactured by goldsmiths constituted a sale within section 2(h) of the U.P. Sales Tax Act, or was merely an exchange or barter transaction outside the Act.

Analysis: Section 2(h) of the U.P. Sales Tax Act defines sale as a transfer of property for cash, deferred payment, or other valuable consideration. The Court held that this expression could not be read as extending to barter pure and simple so as to include bullion exchanged for ornaments. Applying the principle of ejusdem generis, the words "other valuable consideration" were confined to considerations of the same kind as cash or deferred payment, such as negotiable instruments serving the function of money. The Court further held that the legal conception of sale, as understood in the Sale of Goods Act, did not include such a transaction merely because bullion was stock-in-trade and was used in the course of manufacturing and exchange.

Conclusion: The transaction was not a sale within section 2(h) of the U.P. Sales Tax Act, but only an exchange or barter, and was not liable to sales tax.

Ratio Decidendi: A transaction of exchange or barter cannot be treated as a sale under a sales tax statute unless the statutory definition clearly and validly extends the concept of sale beyond its legal meaning; general words such as "other valuable consideration" are to be construed ejusdem generis with cash or deferred payment.

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