TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court rules transportation charges for liquor not taxable under U.P. Trade Tax Act</h1> <h3>Ahuja Goods Agency and Another Versus State of Uttar Pradesh and Others</h3> The court ruled in favor of the petitioner, holding that the transportation charges for transporting liquor were not taxable under section 3-F of the U.P. ... - Issues Involved: The issue involves determining whether transportation charges received by a transporter from a distillery for transporting liquor to various warehouses are liable to tax under section 3-F of the U.P. Trade Tax Act, 1948.Judgment Details:Issue 1: Constitutional Amendment and Definition of Sale- The constitutional amendment introduced clause (29A) in Article 366, expanding the definition of 'sale or purchase of goods.'- Section 3-F was inserted in the U.P. Trade Tax Act, making turnover related to the transfer of the right to use goods taxable.- The petitioner transported liquor for the distillery and received transportation charges, leading to tax assessment under section 3-F.- The petitioner argued that no transfer of the right to use vehicles occurred, as it arranged vehicles from the market for the distillery's use.Issue 2: Transfer of Right to Use Goods- The department claimed that the vehicles remained under the control of the distillery during transportation, constituting a transfer of the right to use goods.- The petitioner contended that without specific vehicle transfer, the right to use goods was not transferred.- The agreements specified that vehicles were to be used only for the distillery's goods, with the transporter retaining custody and responsibility for the vehicles.Issue 3: Interpretation of Transfer of Right to Use- The department argued that the constitutional amendment aimed to include transporters under taxable transactions.- The court referenced a similar case where the control, custody, and possession of goods determined the transfer of the right to use.- Emphasizing the need for exclusive control by the transferee, the court found no evidence of such transfer in the present case.Conclusion:- The court concluded that the contract between the parties was for service, not a transfer of the right to use vehicles.- As no specific vehicle transfer occurred, the transportation charges were not taxable under section 3-F.- The assessment proceedings against the petitioner for consecutive years were quashed, ruling in favor of the petitioner.
TaxTMI 
TaxTMI 
