Amendment status not verified — confirm the current text below against the official source.
Sale. - The Expression 'Sale' includes every transaction in intoxicants with or without license for this purpose. See Section 26 and 61 of the Act. Supply of liquor by a club, mess, institute, society, lodge or other similar organisation deemed to be a sale according to the definition. It has however been held in that there is no sale when food and drink are supplied to guests residing in the hotel. What a customer pays for includes more than the price of the food as such. It includes all that enters into the conception of service and with it no small factor of direct or personal service. It does not contemplate the transfer of the general property in the food supplied as a factor in the service rendered. 11 supply of food and drinks to the customer, therefore, does not partake the character of the sale of goods. A simple transaction in natural way by way of gift has specifically been excluded from the term 'SALE'. Gift is not included in the sale as Gift is a transaction where anything may be transferred by one person to another without any price or consideration for the article. Guidance for this purpose can be drawn from Section 2(g) of the Central Sales Tax Act, 1956. Grammatical expression of' Sale' means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration and include a transfer of goods on hire purchase or other system of payments by installments but does not include a mortgage or hypothication of or charge or pledge on goods Where under a contract of sale, the property in the goods is transferred from the seller to the buyer but contract of the property in goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell (Sale of Good Act 1940 Sec. 4(37). The word' 'sell' should be construed according to its popular meaning and that meaning is that a] sale is made when the agreement is effected and not when delivery is subsequently given