Hire-purchase instalments treated as sale consideration; not taxable as transfer of right to use goods under trade tax law.

Hire-purchase instalments received by an automobile dealer were held outside section 3-F of the U.P. Trade Tax Act because the statute treats delivery of goods under hire-purchase or instalment payment as a sale under section 2(h), taxable under the sales charging provision when the goods are supplied. Section 3-F applies only to transfer of the right to use goods and works contracts, neither of which covered the vehicle hire-purchase arrangement. The hire charges were therefore part of the sale consideration, not a separate taxable transfer of use, and the revisions failed.

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Issues: Whether hire charges received by an automobile dealer under hire-purchase arrangements were taxable under section 3-F of the U.P. Trade Tax Act.

Analysis: The definition of sale under section 2(h) of the U.P. Trade Tax Act includes delivery of goods under hire-purchase or any system of payment by instalments, and such transactions are taxable as sales under section 3 when the goods are supplied. Section 3-F is confined to tax on transfer of the right to use goods and on works contracts. A hire-purchase transaction for sale of a vehicle does not fall within the transfer of the right to use goods in section 3-F, nor does it involve a works contract. The instalments described as hire charges are part of the consideration for the sale already covered by the charging provision for sales.

Conclusion: The hire charges received under the hire-purchase agreements were not taxable under section 3-F of the U.P. Trade Tax Act, and the revisions were liable to be dismissed.

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