Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2007 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (8) TMI 694 - HC - VAT and Sales TaxIs the 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, subject to levy of sales tax under the Tripura Sales Tax Act, 1976? Who is liable to pay such a tax? Whether sub-rule (2) of rule 3A of the Tripura Sales Tax Rules, 1976 can be treated to be a valid piece of delegated? Held that:- It becomes abundantly clear that a person, who executes a works contract, shall, by a legal fiction, which section 2(b) creates, be treated as a "dealer" and such a person, for being a "dealer", becomes, under section 3A, liable to pay sales tax for transfer of property in goods involved in the execution of works contract, for, such transfer of property in goods would be deemed to be a "sale" of the goods by the person making the transfer. Unless the TST Act is suitably amended by either expanding the definition of "dealer" or by making appropriate changes in the provisions of section 3, which is the charging section, no person, who transfers the right to use any goods for any purpose, can be held liable to pay sales tax under the TST Act. What also crystallizes from the above discussion is that rule 3A(2) is, in the light of the discussion held above, ultra vires the TST Act. Appeals, preferred by the writ petitioners, are hereby allowed.
|