Description: The supreme court in M/s. Bharat Sanchar Nigam Limited vs. Union of India Ltd. (Write to petition No.183 of 2003) (judgment dated 2-3-2006) clearly held that in order to bring to tax any transaction they must be goods. The definition of ‘goods’ laid down by the Supreme Court in Tata Consultancy Services vs. State of Andhra Pradesh (2004) 39 APSTJ 205 was adopted and laid down the following tests.
“A ‘good’ may be a tangible property or an intangible one. It would become goods provided it has the attributes there of having regard to (a) its utility, (b) capable of being bought and sold; and (c) capable of transmitted, transferred, delivered, stored and possessed. If a software whether customized or non-customized satisfies there attributes, the same would be goods”.
Source: Trade and Taxes volume no 18. Part no.1 April 2011. Page no.172.
Our Comment: For treating as goods, the transaction should be transfer of goods which has all the three qualities of utility, capable for bought and sale, capable for transfer, stored
