CLAT PG Practice Paper on Sale of Goods Act

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CLAT PG Practice Paper on Sale of Goods ActPassage​​ (Excerpted from the judgment​​ of​​ M/S. Raj Shipping vs The State Of MaharashtraSection 4 of the CST Act provided principles for determining the sale within a State and outside the State. The other principles in Sale of Goods Act, 1930 or Transfer of Property Act for the sale within a State and outside the State have therefore no application including the principles of point when the transfer of property occurs notwithstanding contract or customs to the contrary. If the principles of the section 4 of S.R. Pasha, Sr.PS / J.V.Salunke,PA WP.4552.2015.Judgment.doc the CST Act are applied to the facts of the case, irrespective of the delivery having been given in the territorial waters or irrespective of the contract or custom or usage to the contrary, or whether territorial waters form part of Maharashtra or not, and even assuming while not admitting that territorial waters are not part of Maharashtra, the sale in the present case is exigible to sales tax and there can be no other legal conclusion.​​ It is irrelevant when the property passes in the goods to the buyer or situs thereof for attracting tax liability. The issue of taxability of transaction is strictly governed by the provisions of statute and in the present case by the provisions of section 4 of the CST Act. In the present case, while placing order to the oil company, the goods are in bulk with oil companies and from where required quantity is to be separated and delivered. So the goods at the time of entering into contract that is to say placing order by the Petitioner and acceptance of the said order by the oil company, to execute the contract or placing indent to the storage tank to deliver the HSD from stock may be by way of written delivery order, constitutes acceptance of the order and thus concluded contract comes in existence at the time when the oil company acts upon order to execute the same. Now section 4(1) and (2)(a) provides for the principles of determining when a sale is said to be taken inside a State. Sub section 2 of section 4 is in two parts. First S.R. Pasha, Sr.PS / J.V.Salunke,PA WP.4552.2015.Judgment.doc part deals with ascertained goods and in case of such goods it will be within the State if the goods were within the State at the time when contract is made. We are really not concerned with it. The present goods, it is argued by the​​ Petitioner, are unascertained goods. Be that as it may, the goods when are unascertained, as per clause (b) if the goods are within the State, at the time of appropriation to the contract, it shall be deemed to have taken place within the State. In the present case, the goods are appropriated of its quantity and loaded on the tanker trucks. Invoice in the name of the Petitioner is prepared and shipping bill is drawn. It is this time when the goods are appropriated, that the goods are within the State that is in the oil company's precints and premises. There is no and cannot be dispute about this proposition.QuestionsUnder section 2(6) of the Sale of Goods Act 1930 ‘future goods’ meanUnascertained goodsAscertained goodsSpecific goodsGoods which are not yet in existenceAns. dA ‘sale of goods’ under the Sale of Goods Act 1930 creates:Jus in remJus in personamBoth a and bNone of the aboveAns. aIn which of the following cases the Supreme Court held that electricity is goodsCST, MP v. MPEBVikas sales corporation v. CCTNew India Sugar Mills v. CSTState of MP v. Orient Paper MillsAns. aThe law of equity is not applicable to sale. This statement isTrueFalseDependsNone of the aboveAns. aThe Sales of Goods Act deals with sale ofGoods and servicesOther transfers of goodsGoods onlyAll the aboveAns. cThe definition of goods in the Sale of Goods Act does not includeNewspapersSecuritiesBoth a and bNone of the aboveAns. cIn which of the following cases the Supreme Court held that ‘sale by auction’ is a sale as contemplated by the Sale of Goods Act 1930RC Jal v. Union of IndiaGannon Dunkerley’s caseChowringhee sales bureau v. CIT West BengalState of MP v. Orient Paper MillsAns. cWhich of the following has the legislative competence to make laws related to contract of sale of goodsUnionStateBoth a and bNone of the aboveAns. cThe Sale of Goods Act 1930 contains no illustrations. The statement is​​ TrueFalseDependsNone of the aboveAns. aThe Sale of Goods Act 1930 has ___ chapters6789Ans. b(function( $ ) { //footnotes $('.defaultNote').children(":first").css('cursor', 'pointer'); $('.defaultNote').children(":first").click(function(){ var gotoID = '#' + $(this).parent().attr('id'); $('html, body').animate( { scrollTop: $('a[href="' + gotoID + '"]').offset().top - 60, }, 250, 'linear' ) }); }(jQuery)); var numFormat = ",."; (function( $ ) { "use strict"; //do some cleaning on load var sortCells = $('td[data-sorting], th[data-sorting]'); sortCells.each(function(){ var first = $(this).text().trim().charAt(0); if (first == '@'){ var oldHTML = $(this).html(); var newHTML = oldHTML.replace('@', ''); $(this).html(newHTML); } }); function sortingTable(node, pos, ordBy){ var rows = node.children('tbody').children('tr').get(); rows.sort(function(a, b) { var X = $(a).children('td').eq(pos).text().toUpperCase(); var Y = $(b).children('td').eq(pos).text().toUpperCase(); if (numFormat != '.,'){ //we are dealing with a different locale and we need to do some //transformation in numbers X = convert2number(X); Y = convert2number(Y); } else { X = X.replace(/,/g, '').replace(/ /g, ''); Y = Y.replace(/,/g, '').replace(/ /g, ''); } var currencies = ['$', '¥', '£', '€']; var arrayLength = currencies.length; var XX = X; var YY = Y; for (var i = 0; i < arrayLength; i++) { XX = XX.replace(currencies[i], ''); YY = YY.replace(currencies[i], ''); } if (!isNaN(XX) && !isNaN(YY)){ var floatXX = parseFloat(XX); var floatYY = parseFloat(YY); return -(floatYY-floatXX) * ordBy; } else if (!isNaN(XX) && isNaN(YY)){ return -1 * ordBy; } else if (isNaN(XX) && !isNaN(YY)){ return ordBy; } else { if(X < Y) { return -1 * ordBy; } if(X > Y) { return 1 * ordBy; } return 0; } }); $.each(rows, function(index, row) { node.children('tbody').append(row); }); } function removeTableCellDecoration() { $("td[data-sorting], th[data-sorting]").removeClass('sortDecorator'); } //unbind the click event just in case we are loading more than one document $("td[data-sorting], th[data-sorting]").off('click'); $("td[data-sorting], th[data-sorting]").click(function(){ removeTableCellDecoration(); $(this).addClass('sortDecorator'); //get desired ordering var ordering = $(this).attr('data-sortOrdering'); if (ordering == 'ASC'){ var ordBy = -1; $(this).attr('data-sortOrdering', 'DESC'); } else { var ordBy = 1; $(this).attr('data-sortOrdering', 'ASC'); } var cellPosition = $(this).prevAll().length; var table = $(this).parents('table:first'); sortingTable(table, cellPosition, ordBy); }); function convert2number(str) { str = str.trim(); if (str.match(/^\d+/)) { //we have to take special care when the thousand separators are '.' var result_0 = str.replace(/\./g, '_@_'); var result_1 = result_0.replace(window.numFormat[0], '.'); var result = result_1.replace(/_@_/g, ''); result .replace(/ /g, ''); return result; } else { return str; } } }(jQuery));