TaxTMI 
TaxTMI 
1997 (8) TMI 443
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....ate General of Supplies and Disposals (for short "DGS & D"), Government of India, New Delhi, the respondent-M/s. Embee Corporation, Bombay (hereinafter referred to as "the assessee") who carries on the business of buying and selling chemicals, had submitted a tender for supply of carbamite for use in the manufacture of different types of propellant explosives as per specifications. The assessee in its tender mentioned the name of M/s. Chemisches Werk Lowi, West Germany, as the supplier and from whom the materials were to be imported for which necessary import recommendation certificate was to be provided by the DGS & D for the value of the material to be imported. The total price quoted in the tender was Rs. 23.50 per kg. f.o.r. Bombay and the full break-up thereof was disclosed therein. The DGS & D accepted the tender of the assessee vide letter dated May 29, 1971 subject, inter alia, to the condition that the contract would be governed by the conditions of the contract as contained in form DGS & D-68 (revised) including clause 24 thereof as amended up to-date. It was also a condition that thecontracted material was to be inspected by the Chief Inspector, C.I.M.E., Kirkee, Pune, ....
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....rial liable for exemption from sales tax under the Act. 4.. In this appeal learned counsel appearing for the appellant referred to sections 4, 5 and 18 to 24 of the Sale of Goods Act, 1930, and argued that the expression "sale occasions such import" occurring in sub-section (2) of section 5 of the Act means a completed sale and it should precede the import, and in the present case since there was no sale in terms of the Sale of Goods Act, the sale has not occasioned the import and as such the respondent-assessee is not entitled to any exemption from Central sales tax. 5.. Article 286 of the Constitution forbids a State from imposing or authorising the imposition of a tax on the sale or purchase of goods when such sale or purchase takes place (a) outside the State or (b) in the course of the import of goods into or export of goods outside the territory of India. The Parliament had passed the Act with a view to formulate the principles for determining as to when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside the State or in the course of import into or export from India, to provide for levy of collection and distribution of taxes o....
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....eceived interpretation. In other words, the expression "sale occasions import" has to be given the same meaning which the expression "occasions the movement of goods" has received by the courts. In the light of aforesaid settled legal position emerging from the Constitution Bench decisions, we will now examine the meaning of "sale" as defined in the Act. Section 2(g) of the Act defines "sale" thus: " 'sale' with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes a transfer of goods on the hire purchase or other system of payment by instalments, but does not include a mortgage or hypothecation of or a charge or pledge on goods;" 7.. The above definition of "sale" in the Act shows that the word "sale" has been given a very wide meaning so as to include not only the sale of goods, but also the transactions, namely, a transfer of goods on hire purchase system. Further, the use of words "sale of goods" in section 3 of the Act and the words "contract of sale" occurring in section 4(2) of the Act have been assigned the same meaning whi....
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....actually moved from another State into Mysore is not denied. The respondents only contend that the movement was not the result of a covenant in or an incident of the contract of sale. This Court then, on the facts of the case, found that the movement of cement from another State into Mysore was the result of a covenant in the contract of sale or incident of such contract. This Court did not go into the question as to whether the property had passed before the movement of the goods or not, and this was because according to the decision in Tata Iron and Steel Co. v. S.R. Sarkar [1960] 11 STC 655 (SC), it did not matter whether the property passed in one State or the other. Tata Iron and Steel Co. case [1960] 11 STC 655 (SC), was again followed by this Court in Singareni Collieries Co. Ltd. v. Commissioner of Commercial Taxes [1966] 17 STC 197 (SC). The learned counsel for the respondent, Mr. A. Ranganadham Chetty, invited us to hold that the observations of Shah, J., in Tata Iron and Steel Co. case [1960] 11 STC 655 (SC) were obiter, and to consider the question afresh. We are unable to reopen the question at this stage. Shah, J., was interpreting section 3 of the Act, and although....