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2014 (3) TMI 305 - MADRAS HIGH COURTLevy of tax u/s 3A - Transfer of the right to use the equipments - Whether the Tribunal is right in concluding that in order to attract the levy of tax under Section 3A of the Tamil Nadu General Sales Tax Act, whether the possession of the goods has to be given to the user of the goods - Held that:- it had been found that the O.N.G.C. had imported the equipments viz., the R.P. Chain and the radio paging system, from Dubai, and they had been used by the respondent company, by deployment of the equipments, with their specialised personnel, and that no other person had any access to the equipments, except the staff of the respondent company. As such, the Tribunal held that there was no transfer of the right to use the equipments. Even the O.N.G.C. had no right to use the equipments on their own. However, the physical possession and the effective control of the equipments had been given to O.N.G.C. Even though the possession of the equipments was with O.N.G.C., they had been operated only by the personnel from the respondent company. Section 3-A of the Tamil Nadu General Sales Tax Act, 1959, does not get attracted. The Sales Tax Appellate Tribunal had found that the transactions cannot be treated as one falling under Section 3-A of the Act, warranting levy of tax, as the transactions were in the nature of services and there was no transfer of the right to use the goods in question. Thus, the Tribunal had confirmed the view of the Appellate Assistant Commissioner - In view of the findings of fact relating to the question, with regard to the applicability of Section 3-A of the Tamil Nadu General Sales Tax Act, 1959,we find that it is not necessary for this Court to go into the aspect of limitation, at this stage - Decided against Revenue.
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