2007 (3) TMI 702 - HC - VAT and Sales Tax

Revision dismissed as chilling plant not transferred for use, not constituting transfer of right to use goods.

The revision under section 11 of the U.P. Trade Tax Act, 1948 was dismissed as the chilling plant was not transferred for use, and thus did not constitute ... - Issues involved: Interpretation of section 3F of the U.P. Trade Tax Act, 1948 regarding tax liability for transfer of right to use goods.Summary:The present revision u/s 11 of the U.P. Trade Tax Act, 1948 challenges the Tribunal's order for the assessment year 1995-96, based on the dealer receiving a sum from Dugdh Utpadan Sahkari Sangh Limited, Bulandshahar. The assessing authority alleged tax liability u/s 3F for transfer of right to use a chilling plant. The dealer contended that the chilling plant was never transferred and the payment was for supplying milk and water at a specified temperature. The first appellate authority accepted the dealer's plea, upheld by the Tribunal.Upon review, it was found that the dealer provided milk and water at a specified temperature under the agreement, and the chilling plant was not transferred for use. Expenses were borne by the dealer, and in case of power failure, chilling would be done by ice. Citing the case of Bharat Sanchar Nigam Ltd. v. Union of India, it was emphasized that delivery of possession of goods is necessary for transfer of right to use. As the chilling plant was not delivered to Dugdh Utpadan Sahkari Sangh Limited for use, the case did not fall under transfer of right to use goods. The revision was dismissed for lack of merit.In conclusion, the revision u/s 11 of the U.P. Trade Tax Act, 1948 failed and was dismissed, as the chilling plant was not transferred for use, and the case did not meet the criteria for transfer of right to use goods.