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TMI Blog2009 (10) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... Dhampur for providing plant and machinery on rent and during the year under consideration received total rent of Rs. 1,16,77,320. The claim of the applicant was that stamp paper for the agreement was purchased from Delhi and on September 29, 1995 the agreement was executed at Delhi and, therefore, the right to use has been transferred at Delhi and the trade tax authorities of State had no jurisdiction to levy the tax on the rent received in pursuance of the aforesaid agreement under section 3F of the Act. In support of his contention reliance has been placed on the Supreme Court decision in the case of 20th Century Finance Corporation Ltd. v. State of Maharashtra reported in [2000] 119 STC 182; [2000] UPTC 593. The assessing authority had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted in [2010] 28 VST 244 (All); [2008] UPTC 1231. The learned standing counsel submitted that the Tribunal has recorded a categorical finding that lease rent did not indicate that lease deed was executed at Delhi and merely because stamp paper was purchased at Delhi, it cannot be presumed that the lease deed was executed at Delhi while admittedly the plant and machinery were given on lease in the State of U.P. He further submitted that Explanation I, clause (ii) of section 2(h) of the Act provides that if the goods are used by the lessee within the State during any period, notwithstanding that the agreement for the lease has been entered into outside the State or that the goods have been delivered to lessee outside the State the sale or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stalments; (iv) a transfer or the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; and (vi) the supply by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration. Explanation I.-A sale of purchase shall be deemed to have taken place in the State,- (i) in a case falling under sub-clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded a categorical finding that, from the perusal of the lease deed it did not appear that the agreement has been executed at Delhi. The finding of the Tribunal is finding of fact. The copy of the lease deed has not been annexed along with the revision petitions and the learned counsel for the applicant is not able to show that the lease deed has been executed at Delhi. Merely because the stamp paper was purchased at Delhi, it cannot be presumed that the lease deed was also executed at Delhi on September 29, 1995. Moreover, even assuming that the deed was executed at Delhi, it does not make any difference. Explanation I to section 2(h) of the Act says that sale deemed to have taken place within the State of U.P. if the goods are used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re immovable cannot be accepted. Such pleading has not been taken before the authorities below at any stage. So far as the penalty under section 15A(1)(a) is concerned, I do not find any error in the order of the Tribunal. Merely because the rent has not been received, the applicant cannot be absolved from the liability to disclose such sale in the return. Sales with deferred payment are, also included within the ambit of definition of "sale" under section 2(h) of the Act and, therefore, such receipts were liable to be disclosed. The explanation of the applicant for not disclosing the turnover of rent receivable in the return has rightly not been accepted. In view of the above discussions, both the revisions fail and are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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