Deemed sale of goods under Constitution :
In addition to the aforesaid provisions, Constitution of India contains concept of ‘deemed sale’, which was intruded mainly for purpose of levy of sales tax/Vat on goods by State Government.
Article 366(29A) of Constitution of India, as amended by Constitution (46th Amendment) Act, 1982, w.e.f. 2-2-1983 states as follows :
‘Tax on the sale or purchase of goods’ includes —
(a) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration
(b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract
(c) a tax on the delivery of goods on hire-purchase or any system of payment by instalments
(d) a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration
(e) a tax on supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration
(f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration,
And such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made.
This definition not being omitted – It is interesting to note that this definition has not been omitted.