https://www.taxtmi.com/caselaws?id=152984 Turnover from a cotton transaction was examined under the Tamil Nadu General Sales Tax Act, 1959. The arrangement was treated as a make-belief loan, not a genuine loan, and the relevant sale, if any, was identified at the stage of the original contract that caused the goods to move from Bombay to Coimbatore. The later forfeiture of the deposit for failure to return the goods on time did not create a fresh sale; it was only a contractual forfeiture. Because the movement of goods was occasioned by the pre-existing contract, the transaction was not a local sale within the State and was not liable to tax under the Act. en-us Thu, 30 Oct 1980 00:00:00 +0530 Mon, 15 Jul 2013 14:20:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152984 Turnover from a cotton transaction was examined under the Tamil Nadu General Sales Tax Act, 1959. The arrangement was treated as a make-belief loan, not a genuine loan, and the relevant sale, if any, was identified at the stage of the original contract that caused the goods to move from Bombay to Coimbatore. The later forfeiture of the deposit for failure to return the goods on time did not create a fresh sale; it was only a contractual forfeiture. Because the movement of goods was occasioned by the pre-existing contract, the transaction was not a local sale within the State and was not liable to tax under the Act. Case-Laws VAT and Sales Tax Thu, 30 Oct 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152984