TMI Blog2002 (3) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... Court was right in arriving at such a conclusion. - Civil Appeal No. 31 of 1991 - - - Dated:- 6-3-2002 - SHIVARAJ V. PATIL AND BISHESHWAR PRASAD SINGH JJ. G. Prabhakar, Advocate, for the appellants. S. Ganesh, Senior Advocate (P.S. Sudheer, Advocate, for K.J. John Co., Advocates, with him), for the respondent. -------------------------------------------------- The judgment of the Court was delivered by SHIVARAJ V. PATIL, J.- The only point urged by the learned counsel for the appellants before us is that there was a transfer of right to use the machinery by the respondent in favour of the contractors by collecting hire charges looking to the clauses contained in the agreement. As such it was liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E of the Act. The respondent filed writ petition seeking declaration that the tax levied, exercising power under section 5-E of the Act on the hire charges collected during the period 1988-89, was illegal and unconstitutional. The appellant filed a counter-affidavit in the writ petition contending that the respondent was lending highly sophisticated and valuable imported machinery to the contractors engaged in the execution of the project work on specified hire charges; the machinery was given in the possession of the contractor and he was responsible for any loss or damage to it and in view of the terms and conditions contained in the agreement, there was transfer of property in goods for use and on the amounts collected by the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst respondent's possession and control of the machinery. It may also be noticed that even the Appellate Deputy Commissioner, Kakinada, in the order dated November 15, 1999 in regard to assessment years 1986-87 and 1987-88 held that under the terms and conditions of the agreement there was no transfer of right to use the machinery in favour of the contractor. Although it cannot be said that the appellant was estopped from contending otherwise in regard to assessment year 1988-89, it is an additional factor and circumstance, which supports the stand of the respondent. 5.. In our view, no fault can be found with the order under challenge. In the light of what is stated above this appeal has no merit. Consequently it is dismissed dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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