Transfer of right to use goods requires delivery of possession or control; retained ownership defeats tax liability on bus contracts.

Contracted passenger transport by buses did not amount to a transfer of right to use goods because the corporation retained possession and control throughout the contract period. The drivers and conductors remained the corporation's employees, the running expenses were borne by it, and no delivery of the buses to the contracting parties was shown. A transfer of the right to use goods requires delivery of possession or control at some stage, and mere permitted use without such delivery is insufficient. Tax under section 3F of the U.P. Trade Tax Act, 1948 was therefore not payable, and the tax deletion was left undisturbed.

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Issues: Whether the contracted transportation of passengers by buses of the corporation amounted to a transfer of right to use the buses so as to attract tax under section 3F of the U.P. Trade Tax Act, 1948.

Analysis: The buses were found to remain in the possession and control of the corporation throughout the contract period. The drivers and conductors were employees of the corporation, and the running expenses were borne by it. No delivery of possession or control of the buses to the contracting parties was shown. A transaction can amount to a transfer of right to use goods only when the goods are delivered in a deliverable stage and there is delivery of the goods at some stage; such delivery is essential for attracting the provision.

Conclusion: The contract did not amount to a transfer of right to use the buses, and tax under section 3F was not payable.

Final Conclusion: The revisions were without merit and were dismissed, leaving the deletion of tax intact.

Ratio Decidendi: For a transaction to constitute a transfer of right to use goods, delivery of possession or control of the goods at some stage is essential; mere use of the goods while retaining possession and control with the owner is insufficient.

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