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2016 (1) TMI 872 - HC - VAT and Sales TaxPurchase of Goods against Form C - concessional rate of tax - Deputy Commissioner amended the registration certificate after deleting the two items, namely, “deep-freezer” and “tricycle”, on the ground, that the petitioner is not re-selling the said items. By another order of the same date, the Deputy Commissioner rejected the petitioner's application for issuance of Form-C, on the ground, that the registration certificate has been amended and, therefore, Form-C could not be issued. Held that:- the petitioner was purchasing tricycles and deep-freezers from the manufacturers outside the State of U.P. and these products are mentioned in the certificate of registration issued under Section 8(3)(b) of the Act. The petitioner was, therefore, entitled for issuance of Form-C to enable the petitioner to avail concessional rate of tax on the purchase of these products. The respondents have also admitted that the petitioner has entered into a lease agreement with its distributors and sub-dealers and is paying taxes every year on the lease rent. The order amending the registration certificate is quashed as well as the order refusing to grant Form-C is also quashed. - Form-C to be issued - Decided in favor of assessee. In the light of the aforesaid provisions, it is apparently clear, that deep-freezers and tricycles are re-sold to the distributors and dealers of the petitioner in the same form and condition as a transfer on the right to use the goods. Such “transfer of the right to use the goods” is a “sale” as defined under the Central Sales Tax Act as well as under the VAT Act. The goods purchased by the petitioner as per the products indicated in the certificate of registration are clearly intended “for resale” by it and consequently, the petitioner is entitled for issuance of Form-C in order to avail concessional rate of tax.
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