2017 (12) TMI 1078

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....Learned Commissioner (Appeals) have placed reliance on the ruling of Hon ble Supreme Court in Vikas Sales Corporation and another v/s Commissioner of Commercial Taxes, (1996) 4 SCC 433, wherein the issue before the Court was whether the transfer of REP licence/Exim scrips by the holder thereof to another person constitutes a sale of goods within the meaning of, or for purposes of the sales tax enactment of Tamil Nadu, Karnataka and Kerala. The Hon'ble Supreme Court relying on the definition of goods as defined in clause (d) of Section 2 of the Central Sales-Tax Act, 1956, which defines goods as goods includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims,....

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....nch decision in the case of H. Anraj versus Government of Tamil Nadu, holding otherwise, did not lay down the correct legal position? 5. The Hon'ble Supreme Court have made the following observations: "We are afraid, we find the submission unacceptable. We are unable to see DEPB either as a debt or as a beneficial interest in movable property not in possession of the claimant. To us it is plain that DEPB like REP licence has its own intrinsic value and the purchaser, on payment of consideration, buys something for its value. DEPB credit is thus clearly goods within the meaning of sales tax laws and its sale is clearly exigible to tax. We may observe here, if DEPB (or for that matter REP licence!) has to be compared with a lottery ....