Definition of sale under sales tax law upheld as consistent with the settled meaning and constitutional requirements.

Section 2(o) of the Rajasthan Sales Tax Act, 1954 was upheld because the definition of "sale" remained consistent with the settled legal meaning under the Sale of Goods Act and Supreme Court authority: it continued to require transfer of property in goods for consideration and excluded mortgages, hypothecation, charges and pledges. On that basis, the Court rejected the constitutional challenge and held that the provision was not violative of Articles 19(1)(g), 301 or 304 of the Constitution.

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Issues: Whether section 2(o) of the Rajasthan Sales Tax Act, 1954 and the related amendment were ultra vires the Constitution and whether the impugned definition of "sale" could be struck down as offending articles 19(1)(g), 301 and 304.

Analysis: The definition in section 2(o) was examined against the settled meaning of "sale" under the Sale of Goods Act and the later Supreme Court exposition that a sale is a consensual transaction involving transfer of property for consideration. The Court held that the Rajasthan provision did not enlarge the concept of sale beyond its accepted legal sense, since it still contemplated transfer of property in goods for cash, deferred payment, or other valuable consideration and excluded mortgages, hypothecation, charges, and pledges. On that footing, the constitutional challenge was rejected.

Conclusion: Section 2(o) of the Rajasthan Sales Tax Act, 1954 was upheld as intra vires and not violative of articles 19(1)(g), 301 or 304 of the Constitution of India.

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