2007 (9) TMI 555 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of tax liability u/s 3F of the U.P. Trade Tax Act, 1948 for transportation services provided by UPSRTC.

Summary:
The case involved three revisions arising from the Tribunal's order for assessment years 1996-97, 1992-93, and 1989-90 concerning tax levied on transportation charges by UPSRTC under section 3F of the U.P. Trade Tax Act, 1948. The assessing authority claimed tax on the basis of a perceived transfer of right to use buses by UPSRTC to contracted parties for passenger transportation. However, UPSRTC argued that it only provided buses for transportation services, retaining control and possession of the buses at all times.

The first appellate authority sided with UPSRTC, leading to appeals by the Commissioner of Trade Tax before the Tribunal. The Tribunal upheld the first appellate authority's decision, emphasizing that the buses were always under UPSRTC's control and possession, with drivers and conductors employed by the corporation. The Tribunal's finding was considered a factual determination.

In the absence of evidence showing transfer of possession or control to contracted parties, the Tribunal's decision was supported by legal precedent requiring goods to be deliverable and actually delivered for a transaction to constitute a transfer of right to use. Consequently, the revisions were deemed meritless and dismissed.