2018 (4) TMI 1398 – CESTAT ALLAHABAD – TMI – Nature of activity – Service or sale – transfer of “rights and privilege of export of sugar quota” – whether the transaction is service or in goods? – Held that: – reliance placed in decision of Hon'ble Supreme Court in the case of Vikas Sales Corporation [1996 (5) TMI 363 – SUPREME COURT OF INDIA], where it was held that DEPB has an intrinsic value that makes it a market commodity. Therefore, DEPB, like REP licence qualifies as “goods” within the meaning of the sales tax laws of Delhi, Kerala and Mumbai and its sale is exigible to tax.
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The transaction in question regarding sale of rights and privilege of export of sugar quota is sale of goods and no service is involved – appeal dismissed – decided against Revenue. – E/70503/2017-EX[SM] – 70765/2018 – Dated:- 19-9-2017 – Mr. Anil Choudhary, Member (Judicial) Shri Pradeep Kumar Dubey (Supdt.) AR for Appellant Shri Shubham Agrawal (Advocate) for Respondent Per: Anil Choudhary The issue
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not include newspapers, actionable claims, stocks, shares and securities. what is relevant to note is that this definition is not only inclusive in nature, but takes in all kinds of movable property. It excludes from its ambit certain items, but for such exclusion may have fallen within the ambit of the said definition. It was further held that the licenses have a value of its own. It is by itself a property and it is for this reason that it is freely bought and sold in the market, for all purposes and intent, it is goods. Unrelated to the goods which can be imported on its basis, this commands a value and is treated as such. This is because it enables its holder to import goods which he cannot do otherwise. 4. The said ruling was again followed by a full Bench of Hon'ble Supreme Court in Yasha Overseas v/s Commissioner of Sales Tax and others, alongwith other appeals, reported in (2008) 8 SCC 681, wherein the Hon'ble Supreme Court was considering the ruling in the case of Vika
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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 ticket, it can only be compared with a lottery ticket that has won the prize. The prize-winning lottery ticket ceases to be a mere piece of paper having no value itself. It acquires inherent value and becomes itself a thing of value. Imagine a situation where prize-winning lottery tickets are freely available for sale. (As a matter of fact, clandestine sale of the prize-winning lottery ticket for conversion of black money into white is not completely unknown!) In buying the prize-winning lottery ticket the purchaser would pay the consideration for the value that the piece of paper has acquired and in that situation we fail to see how that ticket can be described as anything else but goods . If any more analo
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