Transferable DEPB credit treated as goods for sales tax because it was a marketable, crystallised commercial entitlement.

Transferable Duty Entitlement Pass Book credit under the Export Import Policy was held to be "goods" for sales tax purposes because it was movable property with independent market value and commercial utility. The court reasoned that the credit was neither money, as it was not a circulating medium of exchange, nor an actionable claim, because it was a crystallised and immediately transferable entitlement usable against import duty without legal enforcement. Even if treated as a debt-like right, it remained assignable property. The credit therefore fell within Section 2(13) of the Bombay Sales Tax Act, 1959 and was liable to sales tax.

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Issues: Whether credit in the Duty Entitlement Pass Book under the Export Import Policy was "goods" within Section 2(13) of the Bombay Sales Tax Act, 1959 and therefore liable to sales tax.

Analysis: The expression "goods" under the Bombay Sales Tax Act covers movable property but excludes money and actionable claims. The credit entry in the Duty Entitlement Pass Book was not money because it was not a freely circulating medium of exchange capable of passing from hand to hand in discharge of debts. Nor was it an actionable claim, because the credit was a crystallised and choate entitlement, immediately transferable and usable for payment of import duty, and no legal action was necessary for its realisation. Even if the credit was viewed as a debt, it remained property available for assignment and taxation. In commercial and trade parlance, the credit had its own value and was freely bought and sold.

Conclusion: The Duty Entitlement Pass Book credit was goods within the meaning of Section 2(13) and was liable to sales tax under the Bombay Sales Tax Act, 1959, against the assessee.

Ratio Decidendi: A transferable, crystallised credit having market value and usable as a commercial commodity is property and not money or actionable claim, and therefore falls within the definition of goods for sales tax purposes.

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