10 August 2012
Judicial precedents in the past have held that reconstruction of business by way of ‘slump sale’ or sale of business as a going concern does not qualify as a taxable sale of goods, hence no Sales tax/ VAT applies on such transactions. [Coromandal Fertilizers v. State of Andhra Pradesh (112 STC 1); Zacharia v. State of Kerala (39 STC 221)].
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