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2015 (7) TMI 1180 - HC - VAT and Sales TaxTaxability - Sec.6(1)(c) of the Act - rental charges received for letting out the hoardings - control over the hoardings let out to lessee - Held that: - Here is a case where under a contract or work order hoarding is transferred to a lessee for a specified period enabling the lessee to display the advertisement works on it according to the wishes and imaginations of the lessee and therefore the assessee is totally excluded from the realm of the work that is carried out by the lessee in the hoardings let out. So also, with regard to the maintenance of the advertisement materials on the hoardings, the revision petitioner has no manner of role during the period of the contract and the same are also absolutely under the control of the lessee. Therefore, we are of the considered opinion that there is definitely a transfer of right to use goods by transferring the hoardings to the lessee by the revision petitioner and therefore the said product is exigible to tax as provided under the Act. After the introduction of sub-article 29A and clause (d) of Article 366, there is a clear power conferred on the Legislature to impose tax on the transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. So the duty casted on the authority was to find out whether there is a transfer of right by an assessee to a third person for the use of goods and once it is found, the assessee is liable to pay tax. The goods defined under Sec.2(xx) of the K.V.A.T Act takes in not only the goods identified in common parlance but also various other kinds of products including livestock, all materials, commodities and articles and every kind of property (whether as goods or in some other form) involved in the execution of a works contract, and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale. Therefore, when the facts of this case are considered, taking into account the said definition also, we are of the opinion that there was transfer of right to use goods by the revision petitioner which makes it exigible and liable to pay tax under Sec.6(1)(c) of the Act. Revision dismissed - decided against assessee.
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