https://www.taxtmi.com/caselaws?id=150465 A hire-purchase arrangement is not a sale until the option to purchase is exercised, so a deeming provision treating such transactions as sales could not validly enlarge the State's taxing power under the sales entry. The Court also held that goods purchased on declaration for resale were not diverted to a different purpose merely because they were later used in genuine hire-purchase transactions leading to eventual resale. On that basis, additions made to taxable turnover under the deeming provision and the proviso dealing with use for a purpose other than resale were struck down, and the assessee's challenge succeeded. en-us Thu, 07 Sep 1972 00:00:00 +0530 Fri, 17 May 2013 11:54:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150465 A hire-purchase arrangement is not a sale until the option to purchase is exercised, so a deeming provision treating such transactions as sales could not validly enlarge the State's taxing power under the sales entry. The Court also held that goods purchased on declaration for resale were not diverted to a different purpose merely because they were later used in genuine hire-purchase transactions leading to eventual resale. On that basis, additions made to taxable turnover under the deeming provision and the proviso dealing with use for a purpose other than resale were struck down, and the assessee's challenge succeeded. Case-Laws VAT and Sales Tax Thu, 07 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150465