TaxTMI 
TaxTMI 
2020 (8) TMI 687
X X X X Extracts X X X X
X X X X Extracts X X X X
....P licence, contending that the same did not come within the definition of 'goods', therefore the sale was not taxable. 3. The relevant extract against the assessee, as found in paragraph 5 of the impugned order, reads as follows; '5. The appellant had claimed exemption for the disputed turnover of Rs. 38,80,611/- on the ground that the appellants transaction with reference to the REP License is exempt from tax. The issue was finally settled by the Honourable Supreme Court of India in the case of Vikas Sales Corporation and Another vs. Commissioner of Comml. Taxes and Another reported in 102 STC 106. No proof was filed to allow the second sales exemption also. Therefore, in view of the decision rendered in the case of Vikas Sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... In paragraphs 39 and 40 of the decision, the Sunrise decision gave illustrations of a number of actionable claims which are transferable. 46. But to our mind that does not in any way change the position insofar as REP licenses are concerned. While examining the three- Judge Bench decision in Vikas earlier in this judgment it is seen that 26 the Court first came to hold that REP licence/exim scrip fell within the definition of goods quite independently. The court found and held that REP licenses had their own value; they were freely bought and sold in the market for their intrinsic value and for that reason alone those were goods. (See paragraph 29 of the decision in Vikas that is reproduced above). It was only after coming to the conclus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en time; conversely a prospective buyer may not find any of the above rights or claims available for purchase by going to the market at any time. Contrary to this, REP licenses had always a market, that is to say, there were people willing to sell and others willing to buy REP licences at all times. Its innate value coupled with free transferability made REP licences into a market commodity and it was that aspect of the matter that Vikas referred to for holding that REP licences could not be classified as actionable claims. Those were goods properly so- called having innate value and a ready market. The position becomes further clear by the completely contrasting findings in Sunrise (in regard to lottery tickets) and in Vikas (in regard to ....