Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 659 - HC - VAT and Sales TaxDeduction of tax at source - deemed sale - transfer of right to use - whether under the project, the petitioners are simply service provider or they are making project for sale of their equipments under the works contract - services in the field of information and technology - to provide data connectivity, voice and video services - Held that:- sub-clause (d) of clause (29A) of article 366 of the Constitution provides transfer of right to use any goods for any purposes is inclusive in the expression "tax on sale or purchase of goods" but in the present case, since the personnel of the petitioners-company have not handed over their possession and control over the equipments for providing services to MSWAN as such said sub-clause cannot be said to have been attracted. Action taken by respondents No. 1 to 5 regarding tax deduction at source under Meghalaya Value Added Tax Act, 2003 against the petitioners who are service providers and who have not transferred the equipments to the respondents, is illegal and it is made clear that the petitioners are not liable to make payment of sales tax on the equipments unless the same are transferred under the agreement executed between the petitioners and respondent No. 4. It is apparent to mention here as per the terms and agreement, that the petitioners are still in possession and control of the equipments by which the service MSWAN is being provided to the State of Meghalaya. - Decided in favour of assessee.
|