Transfer of right to use vehicle must be tested against contract terms before trade tax levy can stand.

Tax liability under section 3F of the U.P. Trade Tax Act, 1948 could not be sustained without first examining the agreement governing supply of the vehicle, because the decisive question was whether there had been a transfer of the right to use the vehicle. As the assessment had been made ex parte and the contractual terms were not considered, the factual and legal basis for levy remained incomplete. The matter was therefore remanded for fresh adjudication, with the assessing authority directed to examine the agreement and determine the levy afresh on that basis.

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Issues: Whether tax liability under section 3F of the U.P. Trade Tax Act, 1948 could be determined without considering the terms of the agreement governing the supply of the vehicle and whether the matter required fresh assessment.

Analysis: The assessment had been made ex parte and the agreement relied upon by the dealer had not been examined by the authorities below. The decisive question was whether there was a transfer of the right to use the vehicle, which could be answered only by construing the contractual terms. Since that document was not considered, the factual and legal basis for levying tax under section 3F remained incomplete and the issue needed reconsideration by the assessing authority.

Conclusion: The matter had to be remanded for fresh adjudication after examining the agreement, and the levy under section 3F was left to be determined afresh by the assessing authority.

Final Conclusion: The revision succeeded, the appellate order was set aside, and the dispute was sent back for de novo assessment on the basis of the agreement.

Ratio Decidendi: Where liability to tax depends on whether there is a transfer of the right to use goods, the contractual terms must be examined before levy can be sustained.

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