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2022 (6) TMI 98 - MADRAS HIGH COURTLevy of Sales Tax - delivery/rental charges - said charges represents pre-sale charges or not - levy of tax on cylinder holding charges under section 3-A of the Act, on the ground that there has been a transfer of right to use the goods, when the cylinders are delivered to the customers - levy of penalty - whether cylinder delivery charges and handling charges are liable to be taxed or not? - HELD THAT:- This issue is no longer res integra and it is answered by the Honourable Supreme Court in the decision in STATE OF ORISSA AND ANOTHER VERSUS ASIATIC GASES LTD. [2007 (5) TMI 322 - SUPREME COURT] where it was held that the cylinders filled with medical oxygen/industrial gas were loaned to the customers. The loan was free from payment of charges for 14 days. The over-retention charges were levied after 14 days. In the circumstances the levy was on the transfer of the right to use the goods for consideration. The cylinder delivery charges and handling/rental charges are liable to be taxed and it was rightly held by the first respondent - there are no infirmity in the order passed by the first respondent warranting interference - petition dismissed.
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