In this Act unless the context otherwise requires:

(xxvi) "Sale" with all its grammatical variation and cognate expression 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) omitted;

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

(f) 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 any other valuable consideration;

(g) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or any 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, but does not include a mortgage, hypothecation, charge or pledge.

Explanation:

(a) 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 inter-State trade or commerce; or

(ii) outside the State of Nagaland; or

(iii) in the course of import or export of goods;

(aa) A sale falling under sub-clause (b) shall be deemed to have taken place within the State if the goods involved in the execution of works contract are within the State at the time of their use, application or appropriation for the execution of works contract;

(b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this explanation shall apply as if there were separate contract in respect of the goods at each of such places.