TMI Blog2006 (1) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... as, "the Act"). The subject-matter of challenge in this petition is the action of the respondents-authorities in issuing notices dated April 12, 2001, February 1, 2002 and September 21, 2002 calling upon the company to show cause why the incidence of sale in question should not be subjected to sales tax under the Act. Oral 2.. The facts leading to the present petition are not disputed. On October 19, 1999, the company sold/assigned certain corporeal rights to one Sarabhai Piramal Pharmaceuticals Limited for a sum of Rs. 34 crores. The necessary documents were executed at Mumbai. It is this transfer of corporeal rights, viz., promotion literature, copy right, technology, etc., which is the subject-matter of controversy. According to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... htra [2000] 119 STC 182. 4.. Mr. Pancholi has contested the petition. He has submitted that the aforesaid judgment in the matter of 20th Century Finance Corpn. Ltd. [2000] 119 STC 182 (SC), shall not apply to the facts of the present case. The said judgment has been delivered by the honourable Supreme Court with respect to the relevant provisions prevalent in the States of Maharashtra, Karnataka, Tamil Nadu, etc. Considering the definition of "sale" under the Act and section 3A thereof, the transfers in question cannot be said to be a deemed sale as was the case before the honourable Supreme Court. In support of his submission, Mr. Pancholi has relied upon the judgment of the honourable Supreme Court in the matter of Tata Consultancy Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In the absence of any such legal fiction the situs of sale in case of the transaction of transfer of right to use any goods would be the place where the property in goods passes, i.e., where the written agreement transferring the right to use is executed. (c) Where the goods are available for the transfer of right to use the taxable event on the transfer of right to use any goods is on the transfer which results in right to use and the situs of sale would be the place where the contract is executed and not where the goods are located for use. (d) In cases where goods are not in existence or where there is an oral or implied transfer of the right to use goods, such transactions may be effected by the delivery of the goods. In such cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been made taxable. The incidence of transfer of such goods has now been made taxable under section 3A of the Act. It should, however, be noted that section 3A of the Act does not fix situs of such specified sale by creating legal fiction. In our opinion, therefore, as held by the honourable Supreme Court in the above referred matter of 20th Century Finance Corpn. Ltd. [2000] 119 STC 182, the incidence of taxability arises at a places where the property in goods is actually passed. In the present case, it is not in dispute that deed of assignment and the deed of sale in question were executed at Mumbai in the State of Maharashtra. In other words, the property in the goods was transferred in the State of Maharashtra. 8.. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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