1998 (3) TMI 585 - SC - VAT / Sales Tax

Meaning of 'transfer of the right to use goods' in leasing-type deals, and whether sales tax assessments can stand

Writ petitions raised the dominant issue of interpretation of 'transfer of the right to use any goods' under Art. 366(29A)(d) and the consequent ... Interpretation of the words “transfer of the right to use any goods” in sub-clause (d) of clause (29A) of article 366 of the Constitution - HELD THAT:- Having regard to the question that was involved in the writ petitions related to interpretation of sub-clause (d) of clause (29A) of article 366 of the Constitution and the taxability of the transactions in respect of which sales tax has been assessed by the Sales Tax Officer. We are of the view that the High Court should have entertained the writ petitions and should have considered the said question instead of requiring the appellant to avail the remedy of appeal under the Sales Tax Act. The appeals are, therefore, allowed, the impugned judgment of the High Court is set aside and the writ petitions filed by the appellant are remitted to the High Court for consideration on merits. The Supreme Court allowed the appeals against the Orissa High Court judgment in writ petitions filed by the Port Trust challenging sales tax assessment orders for 1990-91 to 1994-95. The High Court had dismissed the writ petitions, stating that the appellant should use the appeal remedy under sales tax law. However, the Supreme Court held that the High Court should have considered the interpretation of the relevant constitutional provision and taxability issues. The High Court judgment was set aside, and the writ petitions were remitted for further consideration.