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2022 (12) TMI 595 - HC - VAT and Sales TaxDeemed sale - leasing of wagon - Levy of Value Added Tax (VAT) on the lease charges paid by the Railways Department to the Petitioner Company - interstate sale or local sale - Own Your Wagon Scheme - HELD THAT:- The High Court of Orrisa in “M/s Srei International Finance Ltd. Vs. State of Orissa & Ors.” [2008 (3) TMI 638 - ORISSA HIGH COURT[ in somewhat identical set of facts has held that since the sale or purchase was in the course inter-state trade and commerce, the State of Orissa has no jurisdiction to levy tax on the lease rent received. The taxable event is the transfer of right to use goods and not the right to use goods or the use of goods. Therefore, the right to use goods or the use of goods is not the relevant factor to justify the levy of tax. The Orders of the assessment so made by the Assessing Authority and the rejection of the Revision by the Revisional Authority both being in contravention to the provisions of law and also contrary to the Judgments of the Hon'ble Supreme Court, the same thus would not be sustainable and therefore both the Orders deserve to be set-aside/quashed.
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