Lottery ticket as actionable claim, not goods, so transfer is outside sales tax.

A lottery ticket was treated as an actionable claim, because it merely evidences a conditional right to claim a prize and has no independent value as goods. Applying the Constitution Bench ruling that actionable claims may be movable property in a wider sense but are excluded from the definition of goods for sales tax purposes, the Court held that the ticket is not goods. The transfer of the ticket was therefore not exigible to sales tax in the manner contended.

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Issues: Whether a lottery ticket constitutes goods or an actionable claim, and whether its transfer is exigible to sales tax.

Analysis: The Court applied the Constitution Bench ruling that an actionable claim is movable property in a wider sense but is excluded from the definition of goods for the purposes of sales tax law. A lottery ticket was treated as merely evidencing a conditional right to a prize, having no independent value as goods. The right represented by the ticket was held to fall within the concept of an actionable claim.

Conclusion: A lottery ticket is an actionable claim and not goods for sales tax purposes; the levy therefore does not apply on its transfer in the manner contended.

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