Substantial questions of law on transfer of right to use goods and sale of documents justified a reference.

The proposed questions concerning whether contractors' use of cranes and heavy vehicles amounted to a transfer of the right to use goods, and whether supply of tender documents and application forms constituted a sale, were treated as substantial questions of law. After considering the record and the authorities cited, the HC found that the issues were not merely factual and were fit for determination under section 42(2) of the Haryana General Sales Tax Act, 1973. The reference was therefore directed to be made.

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Issues: Whether the questions proposed by the applicant were substantial questions of law requiring reference to the High Court under section 42(2) of the Haryana General Sales Tax Act, 1973.

Analysis: The application sought a reference on questions concerning whether the use of cranes and heavy vehicles by contractors amounted to a transfer of the right to use goods and whether the supply of tender documents and application forms constituted a sale. After considering the record and the legal authorities referred to, including the Supreme Court decision relied upon in the proceedings, the Court found that the proposed questions were not merely factual but raised substantial questions of law fit for determination by the High Court.

Conclusion: The questions were held to be substantial questions of law and the reference was directed to be made.

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