STATE OF TAMIL NADU Vs. THIRU MURUGAN BROTHERS

JUDGEMENT

(1.) This appeal by special leave is directed against the Judgment of a Division Bench of the Madras High Court in Tax Case No. 72 of 1968.

(2.) Respondent, a firm, is a registered dealer under the Madras General Sales Tax Act, 1959 (hereafter 'Act' for short). The Deputy Commercial Tax Officer completed the assessment for the year 1962-63 by his order dated 6-8-1973. While examining the accounts of the subsequent year, the Assessing Officer discovered a transaction relating to sale of a film named "Nanum Oru Penn" to M/s. A.V.M. Productions for a consideration of Rs. 1,91,903-57 on 30th March, 1963. As the transaction related to the year 1962-63, the Assessing Officer reopened the assessment for the previous year and included the sale price in the turnover, and raised the demand along with penalty. The reassessment was unsuccessfully challenged in appeal before the Appellate Assistant Commissioner. Before the Tribunal in second appeal the question as to whether sale of the incomplete film was goods, as contemplated under the Act, was raised. The Tribunal took into account the definition of the word "goods" in the Act and kept in view the ratio of the decision of the Madras High Court in the case of Meiyappen v. Deputy Commr. (1967) 20 STC 115 and held that the transaction did not amount to sale. The revenue carried the matter to the High Court. The High Court held:

(3.) The Madras Act defines goods thus in S.. 2 (j):