Transfer of the right to use goods: hire of shuttering for consideration was held taxable as a deemed sale.

Hire charges for shuttering supplied to builders and contractors were treated as a deemed sale because the arrangement transferred the right to use goods for consideration. The statutory definition of sale, aligned with article 366(29A)(d), does not require transfer of property in the goods or a permanent lease-like transfer. Once the shuttering was placed at the users' disposal and they obtained effective control and use during construction, the ingredients of a taxable transfer of the right to use goods were satisfied. The hire transaction was therefore liable to sales tax.

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Issues: Whether hire charges received for giving shuttering on use to builders and contractors amounted to a taxable sale under the Haryana General Sales Tax Act, and whether such transactions fell within the constitutional concept of a transfer of the right to use goods.

Analysis: The statutory definition of sale in the Haryana General Sales Tax Act incorporated the constitutional language of article 366(29A)(d), which treats a transfer of the right to use goods for consideration as a deemed sale. The provision does not require an of property in the goods or a permanent transfer akin to a lease. Once the assessee placed the shuttering at the disposal of builders and contractors for consideration and they enjoyed effective control and use of it during construction, the statutory ingredients of a transfer of the right to use goods were satisfied.

Conclusion: The hire of shuttering for consideration constituted a deemed sale and was liable to sales tax; the challenge of the assessee failed.

Ratio Decidendi: A transaction for consideration that transfers to another the right to use goods is a deemed sale, even without transfer of property in the goods, and is taxable under the sales tax entry.

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