https://www.taxtmi.com/caselaws?id=165480 Refundable deposits on beer bottles and crates were not treated as sale consideration where the contract and conduct showed a continuing arrangement for return and reuse. Applying section 19 of the Sale of Goods Act, 1930, the SC found that property in the containers did not pass as part of an out-and-out sale because the supplier charged separate refundable deposits, facilitated return of empties, and issued credit notes on return. Any forfeiture for non-return was treated as liquidated damages under section 74 of the Contract Act, 1872, not as conversion of the deposit into sale price. The bottles and crates were therefore outside the taxable sale price. en-us Tue, 04 Mar 1997 00:00:00 +0530 Wed, 23 Jul 2014 17:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165480 Refundable deposits on beer bottles and crates were not treated as sale consideration where the contract and conduct showed a continuing arrangement for return and reuse. Applying section 19 of the Sale of Goods Act, 1930, the SC found that property in the containers did not pass as part of an out-and-out sale because the supplier charged separate refundable deposits, facilitated return of empties, and issued credit notes on return. Any forfeiture for non-return was treated as liquidated damages under section 74 of the Contract Act, 1872, not as conversion of the deposit into sale price. The bottles and crates were therefore outside the taxable sale price. Case-Laws VAT and Sales Tax Tue, 04 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165480