9911796707
TMI BlogTransfer of goods by way of hiring, leasing, licensing or in any other mannerX X X X Extracts X X X X X X X X Extracts X X X X ..... r without transfer of right to use such goods. Analysis: State governments do not have any power to tax a transaction where there is no transfer of right of possession and effective control to the other party. There are so many transactions in which only use of goods are permitted to other party while control remains with the owner of goods. For example cranes hired on rent, in which only use of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on lease, license or hiring basis does not result in transfer of right to use goods. 'Transfer of right of goods' involves transfer of possession and effective control over such goods in terms of the judgment of the Supreme Court in the case of State of Andhra Pradesh vs Rashtriya Ispat Nigam Ltd [2002 (3) TMI 705 - SUPREME COURT OF INDIA]. Transfer of custody along with permission to use or enjoy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the exclusion to the transferor - this is the necessary concomitant of the plain language of the statute, viz., a 'transfer of the right to use' and not merely a license to use the goods; • Having transferred, the owner cannot again transfer the same right to others. Whether a transaction amounts to transfer of right or not cannot be determined with reference to a particular word or clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions in the contract relating to the manner of use of such equipment after a specified time, maintenance and upkeep of such equipment. The transaction will not involve transfer of right to use such equipment as in terms of the agreement the possession and effective control over such equipment has not been transferred. 3 Hiring of bank lockers No, as possession of the locker is not transferr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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