Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 297 - HC - VAT and Sales TaxLiability of VAT - advertisement display sites - Petitioner submitted that Sites are being used by itself for rendering services and there is no transfer of any right to use those sites as alleged by the Revenue but the revenue contended that the Sites for display of advertisements are “goods” and the petitioner has transferred the right to use those goods to various advertising agencies/advertisers, who use the Sites for display of their advertisement and/or advertisements of their clients. Held that:- it would be necessary for the authorities to examine the transactions entered into by the petitioner from the stand point whether there has been any transfer of the right to use the Sites under the agreement entered into by the petitioner with the advertisers. On a plain reading of the Licence Agreement entered into between DIAL and the petitioner, it is difficult to accept that the petitioner acquired any right to transfer any right to use the Sites in question. It is also important to examine the petitioner's contention that the Sites were being used by the petitioner for rendering services and no right to use the Sites had in fact been transferred by the petitioner. Merely, because the advertisements of the advertisers were displayed on the Sites would not necessarily lead to the conclusion that they had acquired the right to use the Sites. In the present case, it is not disputed that the Sites in question are located in a restricted area and none of the advertisers have an unmitigated access to those Sites; the petitioner affirms that possession of the Sites is retained by DIAL. Therefore, it would be difficult to accept the view that the transactions entered into by the petitioner with the advertisers constituted transfer of the right to use the Sites in question. Also the order dated 7th February, 2014 (as rectified by the order dated 13th February, 2014) is modified and the Special Commissioner is directed to consider the objections filed by the petitioner in light of the observations made in this order without insisting on pre-deposit of any amount. With regard to the impugned notices under Section 59 of the DVAT Act dated 8th May 2013 and 21st October 2013 requiring the Petitioner to produce documents stated therein for the period of 2012-13, the court directs the assessment be completed keeping in view the observations made in this order. - Petition disposed of
|