https://www.taxtmi.com/caselaws?id=100250 Hire-purchase transactions were not treated as sales for sales tax purposes until the hirer exercised the option to purchase and property actually passed. The Court held that a hire-purchase arrangement contains both bailment and a contingent sale element, but the taxable event of sale does not arise before completion of the option to purchase. A State Legislature cannot, by a deeming provision, convert a transaction where title has not passed into a sale under the sales law framework. Applying the controlling precedent, the Supreme Court held Explanation (1) to Section 2(j) of the Kerala General Sales Tax Act, 1125 beyond legislative competence, so hire-purchase turnover could not be included in taxable turnover. en-us Tue, 27 Sep 1966 00:00:00 +0530 Sat, 21 Sep 2013 11:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100250 Hire-purchase transactions were not treated as sales for sales tax purposes until the hirer exercised the option to purchase and property actually passed. The Court held that a hire-purchase arrangement contains both bailment and a contingent sale element, but the taxable event of sale does not arise before completion of the option to purchase. A State Legislature cannot, by a deeming provision, convert a transaction where title has not passed into a sale under the sales law framework. Applying the controlling precedent, the Supreme Court held Explanation (1) to Section 2(j) of the Kerala General Sales Tax Act, 1125 beyond legislative competence, so hire-purchase turnover could not be included in taxable turnover. Case-Laws VAT and Sales Tax Tue, 27 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100250