2007 (9) TMI 39 - HC - Service Tax

Lottery Tickets Deemed Actionable Claims, Challenging Regulatory Notice Successfully Overturned Through Legal Interpretation

The HC of Sikkim determined lottery tickets constitute actionable claims rather than goods. The writ petition was successful, resulting in the quashing of ... Lottery tickets are actionable claims - lottery tickets are not 'goods' within the meaning of the Sale of Goods Act - distinction between actionable claim and goods - no service in relation to promotion, marketing or sale of goodsLottery tickets are actionable claims - lottery tickets are not 'goods' within the meaning of the Sale of Goods Act - Whether lottery tickets constitute 'goods' under the Sale of Goods Act or are actionable claims. - HELD THAT: - The Court followed the Constitution Bench decision in Sunrise Associates (2006) 5 SCC 603 and held that lottery tickets are to be treated as actionable claims. On that basis, lottery tickets do not fall within the definition of 'goods' under the Sale of Goods Act. The question being one of pure law, no affidavit was required and the earlier extracted statutory provisions and authoritative precedent determined the classification of lottery tickets as actionable claims rather than goods.Lottery tickets are actionable claims and not goods within the meaning of the Sale of Goods Act.No service in relation to promotion, marketing or sale of goods - Whether, in view of the classification of lottery tickets, the writ petitioners could be said to be rendering any service in relation to promotion, marketing or sale of their client's goods. - HELD THAT: - Because lottery tickets are not goods, the activities of the writ petitioners could not be characterised as rendering services relating to promotion, marketing or sale of their client's goods. The impugned notice was founded on the contrary premise and therefore could not stand in law.The writ petitioners cannot be held to be rendering services in relation to promotion, marketing or sale of goods.Final Conclusion: The writ petition is allowed on the ground that lottery tickets are actionable claims and not goods; the impugned notice dated 30-4-2007 is quashed. No order as to costs. The High Court of Sikkim ruled that lottery tickets are actionable claims, not goods. The writ petition succeeded, and the impugned notice was quashed. No costs were awarded. (Citation: 2007 (9) TMI 39 - HIGH COURT, SIKKIM)