Sales Tax

Sale

— AY 1987-88 — <169>Sale<170> as defined in S. 2(h), U.P. Trade Tax Act, 1948 after amendment in consonance with Art. 366(29-A) of the Constitution — Words <169>transfer of property in goods for cash ... or other valuable consideration<170> — Scope — Owner of sugar mill, by a licence deed, granting the assessee the right to use the said sugar mill — Pursuant thereto, assessee executing a performance guarantee — Although not required under the terms of the licence to do so, by the said performance guarantee the assessee undertaking to hand over the entire quantity of the molasses to the owner of the sugar mill subject to the stipulation that the price thereof, computed at the rates notified by the Government, would be adjusted against the licence fee and any excess or shortage would be made good by the party concerned — In such circumstances, the adjustment of the price of molasses with the amount of licence fee, held, covered by the words <169>other valuable consideration<170> — Hence, irrespective of the definition of <169>sale<170> contained in Sale of Goods Act, 1930, it amounted to <169>sale<170> — Moreover, it did not constitute an exchange or barter — The State, therefore, in view of Entry 54, List II of Sch. VII to the Constitution, competent to tax the same — Concept of <169>barter<170> and <169>exchange<170> explained — Since in terms of the Act the manufacturer is a dealer, held, it could not be said that the supply of molasses in the present case was a mode of payment of licence fee, (2006) 5 SCC 624-A

Interpretation of Statutes

Internal aids

— Definition clause — Inclusive definition, held, must be given a broad meaning — S. 2(h), U.P. Trade Tax Act, 1948 interpreted accordingly, (2006) 5 SCC 624-B

Sales Tax

Assessment Order

— Appeal against, by a party other than the assessee succeeding partly — Omission on the part of the Revenue to further challenge that order, held, would not bar the Revenue from supporting the assessment order in the case initiated by the assessee against the assessment order, (2006) 5 SCC 624-C