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 ..... sing or in any such manner 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zed constitutional and legal concept. Every transfer of goods 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 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period during which the transferee has such legal right, it has to 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Supply of equipment s like excavators, wheel loaders, dump trucks, cranes etc. for use in a particular project have where the person to whom such equipment is supplied is subject to such terms and conditions 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 invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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