Transferable DEPB rights as goods: commercial value and marketability brought their transfer within Delhi sales tax.

Freely transferable Duty Entitlement Pass Book rights with independent market value were treated as movable property and, therefore, as "goods" under the Delhi sales tax law. The analysis distinguished DEPB from an actionable claim, a mere right to sue, or money, and applied the principle that incorporeal rights capable of commercial sale can fall within the statutory definition of goods. On that basis, transfers of DEPB were held taxable, and the notifications levying tax on such transfers were upheld.

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Issues: Whether Duty Entitlement Pass Book rights are "goods" within the sales tax law so as to be liable to tax on transfer, and whether the impugned notifications levying tax on such transfers were valid.

Analysis: The definition of "goods" under the Delhi sales tax law was read broadly as covering all movable property except the specifically excluded categories. The nature of DEPB was examined against the settled understanding of goods, movable property, and actionable claim. The Court found that DEPB confers a transferable, freely tradable right with independent market value and is bought and sold as merchandise in the commercial world. It is not a mere right to sue, nor an actionable claim, nor money. Reliance was placed on the principle that incorporeal rights with exchangeable value can constitute property and fall within the sales tax definition of goods. The notifications were therefore upheld as applying to taxable transfers of such property.

Conclusion: DEPB is goods for sales tax purposes, its transfer is taxable, and the challenge to the notifications failed.

Ratio Decidendi: A freely transferable right having independent market value and commercial salability constitutes movable property and is not an actionable claim merely because it is intangible.

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