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

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

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

(c) delivery of goods on hire purchase or any other system of payment by instalments;

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

(e) 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;

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 purchase of those goods by the person to whom such transfer, delivery or supply is made.

Explanation :-(I) A sale or purchase of goods shall not be deemed to have taken place inside the State if the goods are sold;

(i) in the course of the inter-State trade or commerce;

(ii) outside the State; or

(iii) in the course of the import or export of goods into; or outside, the territory of India.

Explanation: -(II) Where there is a single contract of sale or purchase of goods situated at more places than one , the provisions of Explanation (I) shall apply as if there were separate contracts in respect of the goods at each of such places;