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Supreme Court Of India

Hon'ble Judge(s): Ruma Pal, B. N. Srikrishna, S. H. Kapadia, Tarun Chatterjee, P. P. Naolekar , JJJ

( A ) Delhi Sales Tax Act (43 of 1975) S. 4 (1)(cc) (as inserted w.e.f. 2-1-1995 by 1994 Act) — Constitution of India, Art. 366(29A)(a) — Transfer of Property Act (4 of 1882), S. 130 — Sale of lottery tickets — Not a sale of ‘goods’ — Not subject to sales tax — Definition of ‘goods’ in Sales Tax Laws excludes actionable claims — And sale of a lottery ticket amounts to transfer of ‘actionable claim’ i.e. it involves right to claim a prize depending on chance.Section 130 of the Transfer of Property Act provides that an actionable claim may be assigned for value. A right on the fulfillment of certain conditions to call for delivery of goods mentioned in a contract is an actionable claim and assignable under S. 130. There may also be assignments of an actionable claim dehors S. 130. Negotiable Instruments, another species of actionable claim, are transferable under the Negotiable Instruments Act, 1881. Transferability is therefore not the point of distinction between actionable claims and other goods which can be sold. The distinction lies in the definition of actionable claim. Therefore if a claim to the beneficial interest in movable property not in the vendee’s possession is transferred, it is not a sale of goods for the purposes of the sales tax laws. 1996 AIR SCW 2505; 1998 (46) DRJ 397, Overruled; AIR 1986 SC 63, Partly Overruled. (Paras41)There can be no doubt that on purchasing a lottery ticket, the purchaser would have a....