https://www.taxtmi.com/caselaws?id=334398 Exim scrips and replenishment licences are treated as goods only when transferred or assigned as marketable instruments for consideration; the original grant is not a sale, though a market transfer may attract sales tax. Where the designated bank receives the instruments merely as agent of the Reserve Bank of India for cancellation and destruction, the purpose is only to extinguish the rights created by the licence and remove the instrument from the market. In that situation, the instrument loses its commercial character and ownership is not transferred in the sense required for purchase tax. The State Bank of India was therefore not liable to purchase tax under Section 4(6)(iii). en-us Tue, 08 Nov 2016 00:00:00 +0530 Fri, 16 Mar 2018 15:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=334398 Exim scrips and replenishment licences are treated as goods only when transferred or assigned as marketable instruments for consideration; the original grant is not a sale, though a market transfer may attract sales tax. Where the designated bank receives the instruments merely as agent of the Reserve Bank of India for cancellation and destruction, the purpose is only to extinguish the rights created by the licence and remove the instrument from the market. In that situation, the instrument loses its commercial character and ownership is not transferred in the sense required for purchase tax. The State Bank of India was therefore not liable to purchase tax under Section 4(6)(iii). Case-Laws VAT and Sales Tax Tue, 08 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=334398