IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:17.06.2009 CORAM: THE HON'BLE MR.JUSTICE F.M.IBRAHIM KALIFULLA AND THE HON'BLE MR.JUSTICE B.RAJENDRAN T.C.(Revision) No.1 of 2009 M/s M.R.S.Lucky Lottery Centre No.21, Broadway Bus Stand, Chennai 600 001. ...Petitioner Vs. The State of Tamil Nadu ..Respondent Tax Case Revision filed under section 38 of the Tamil Nadu General Sales Tax Act 1959 to revised the order of the Sales Tax Appellate Tribunal in T.A.NO.891 of 1995 dated 10.9.1997. against the Order of the Appellate Assistant Commissioner(CT)-I Chennai in his Appeal Nos.100/95, 101/95 and 102/95 dated 28.3.95 relating to the Assessment Year 1988-89,89-90 and 90-91 in Appeal No.101/95 against the order of the Deputy Commercial Tax Officer, Rattan Bazaar Assessment Circle in his proceedings 1651/91/89-90 dated 24.1.92. For Petitioner :Mr.Jayapratap for Mr.S.N.Kirubanandam For Respondent: Mr.Haja Nazrudden Special Government Pleader(T) O R D E R (Order of the Court was made by F.M.IBRAHIM KALIFULLA,J) The assessee has come forward with this revision. The question of law now raised before us is whether in the facts and circumstances of the case, the Sales Tax Appellate Tribunal is justified in confirming the levy of tax on sales of lottery tickets which cannot be considered as goods. https://hcservices.ecourts.gov.in/hcservices/ 2. The assessee is a dealer in the sale of lottery tickets. Earlier, the Hon'ble Supreme Court in the decision reported in 1986 61 STC 165 in H.Anraj Vs. Government of Tamil Nadu took a view that the sale of lottery ticket involved sale of goods. The said question came to be considered by the Constitution Bench by way of reference in the decision reported in 2000 (10) SCC 420 in Sunrise Associates Vs. Government of NCT of Delhi & Others. The question which was referred for the consideration of the Constitution bench was "Whether the lottery tickets are goods and the decision in H.Anraj Vs. Government of Tamil Nadu reported in 1986 1 SCC 414 that lottery tickets are goods for the purpose of Article 366(29A)(a) of the Constitution and the State Sales Tax Laws was correct. The Hon'ble Supreme Court ultimately took the view as under in paragraph 52 which reads as follows: "We are therefore of the view that the decision in H.Anraj (1980) 1 SCC 414 incorrectly held that a sale of a lottery ticket involve as sale of goods. There was no sale of goods within the meaning of the Sales Tax acts of the different states but at the highest a transfer of an actionable claim. The decision to an extent that it held otherwise as accordingly overruled though prospectively with effect from the date of this Judgment". 3. In the order impugned in this revision, the assessment related to the year 1989-90. The Constitution Bench having now taken a view that the sale of lottery ticket does not involve sale of goods within the meaning of the Sales Tax Act and at the highest, a transfer of an actionable claim, the impugned proceedings in so far as it held that the business turn over of the assessee by virtue of sale of lottery tickets can no longer be held to be a sale of goods attracting the provisions of TNGST Act for the future years. 4. With that observation, the Tax Case revision is disposed of. The question of law raised is answered in favour of the assessee. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar VJY https://hcservices.ecourts.gov.in/hcservices/ To 1.The Assistant Registrar, Income Tax Appellate Tribunal 'B' Bench Chennai. 2.The Deputy Commercial Tax Officer, Rattan Bazaar Assessment Circle, Chennai-3 3.The Assistant Commissioner (CT)-I 6th Floor, Kuralagam Annexe, Chennai-108 1 cc To the Government Pleader(T) SR.23894 1 cc To Mr.S.N.Kirubanandam, Advocate, SR.23642 T.C.(Revision) No.1 of 2009 ssr(co) pmk.26.6.2009. https://hcservices.ecourts.gov.in/hcservices/