Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2023 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 166 - BOMBAY HIGH COURTInterpretation of statute - Deemed sale - transfer of right to use the cranes - proper construction of Section 2(24) of Maharashtra Value Added Tax Act, 2002 - right to transfer the cranes - transaction entered into by the Respondent with its customers with specific reference to the discernible and distinguishing contract clauses amount to “sale” under the Maharashtra Value Added Tax Act, 2002 or not - HELD THAT:- The Tribunal has compared the attributes of transfer of the right to use goods as discussed in General Cranes [2015 (5) TMI 32 - BOMBAY HIGH COURT] with those in the present matter, i.e., the clauses of the contracts in both matters. The Tribunal has observed that the clauses in both the cases are substantially similar. No clause in the contract in this case can be construed so as to conclude that there was intention to transfer the right to use the cranes in favour of SISL. Every clause in contract and in particular the emphasized portion as quoted above, unmistakably lead to the conclusion that the cranes were under effective control and possession of Respondent herein and during the contract period, the same were in the custody of SISL. It indicates there was no transfer at all, let alone transfer of the right to use. It was a clear case of giving on hire of cranes. The corresponding provision under the Act is the definition of ‘sale’ in Section 2(24) of the Act. Comparing the two corresponding provisions, the Tribunal has found full support in the contention of Respondent that the same are in ‘pari materia’. Hence the Tribunal has held that the decision in General Cranes is totally applicable to the present case and thus, the ultimate control over the cranes being retained by Respondent, there is no question of transfer of right to use. Thus, the Tribunal allowed the Appeal of Respondent. All the clauses indicate that the effective control and possession have always remained with Respondent and what was being provided to SISL was only the deployment of the cranes on hire. The work order/contract clearly indicates the intention of parties that the custody and effective control of the cranes was to remain with Respondent. In these circumstances, it would be incorrect to contend that there was a transfer of right to use the cranes. Appeal of the revenue dismissed.
|