In this Act, unless the context otherwise requires,-

(ze) "sale" with all its grammatical variations and cognate expressions means every transfer of property in goods (other than by way of mortgage, hypothecation, charge or pledge) by one person to another in the course of business for cash, deferred payment or other valuable consideration and includes.

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) a 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;

(v) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(vi) a 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;

(vii) every transfer of property in goods, by a department of the Central Government or any State Government or Union Territory Administration or a local authority by name of any panchayat, municipality, Development Authority or any autonomous or statutory body including a Port Trust and the like, for cash or for deferred payment or other valuable consideration, whether or not in the course of business.

Explanation.I.-Notwithstanding anything to the contrary contained in this Act or any other law for the time being in force, two independent sales or purchases shall, for the purpose of this Act, be deemed to have taken place.

(a) when the goods are transferred from a principal to his selling agent and from the selling agent to the purchaser;

(b) when the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if in either case the agent is found-

(1) to have sold the goods at one rate and to have passed on the sale proceeds to his principal at another rate; or

(2) to have purchased the goods at one rate and to have passed the same on to his principal at another rate; or

(3) not to have accounted to his principal for the entire collections or deductions made by him in the sales or purchases effected by him on behalf of his principal; or

(4) to have acted for a fictitious or non-existent principal.

Explanation .II.- The sale or purchase of goods shall be deemed, for the purposes of this Act, to have taken place in the Union Territory, wherever the contract of sale or purchase might have been made, if the goods are within the Union Territory.

(a) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made, and

(b) in the case of unascertained or future goods at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation;