Completed sale on delivery: deferred price settlement does not prevent inclusion in taxable turnover.

Delivery of machinery under a delivery challan, with the price to be settled later and the sale invoice raised subsequently, was treated as a completed sale for tax purposes once property in the goods passed on delivery. Section 2(n) of the Tamil Nadu General Sales Tax Act, 1959 recognises a sale where goods are transferred for cash, deferred payment, or other valuable consideration, and the absence of immediate invoicing did not negate that transfer. The turnover was therefore includible in the taxable turnover for the relevant assessment year, and deferred price fixation did not prevent taxation where delivery and contractual obligation to pay were established.

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Issues: Whether the delivery of machinery under a delivery challan, with the price not finally settled and the sale invoice raised later, constituted a completed sale liable to be included in the taxable turnover for the relevant assessment year.

Analysis: Section 2(n) of the Tamil Nadu General Sales Tax Act, 1959 treats a sale as a transfer of property in goods for cash, deferred payment, or other valuable consideration. The goods were delivered to the customer under a delivery challan that quoted the price, and the customer's letter showed acceptance of delivery and an obligation to pay after the price was settled. The absence of immediate invoicing or final settlement of price did not prevent the transfer of property or the existence of valuable consideration. The essential elements of sale were therefore satisfied on the date of delivery itself.

Conclusion: The turnover was rightly included in the taxable turnover for the assessment year 1988-89. The Tribunal was incorrect in deleting the amount, and the finding is against the assessee and in favour of the Revenue.

Ratio Decidendi: A sale is completed when property in goods passes for valuable consideration, and deferred fixation or payment of price does not prevent taxation where delivery and contractual transfer are established.

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