Transfer of the right to use vehicles requires effective control; bus supply for staff transport was not taxable under section 3F.

Receipts from supplying buses for employee transportation did not amount to a transfer of the right to use the vehicles. Section 3F of the U.P. Trade Tax Act, 1948 applies only where effective possession and control of the goods pass to the recipient. Here, the buses remained under the assessee's possession and control, and the companies were entitled only to use them for specified transport purposes. The assessee retained responsibility for running expenses, maintenance, drivers, taxes, permits and transit risk. As the agreements did not place the vehicles at the companies' disposal in a manner that transferred effective control, section 3F was not attracted.

---

---

Issues: Whether the receipts for supplying buses for employee transportation amounted to a transfer of the right to use the vehicles so as to attract section 3F of the U.P. Trade Tax Act, 1948.

Analysis: Section 3F applies only where there is a transfer of the right to use goods. On the terms of the contracts, the buses remained under the assessee's possession and control, while the companies were only entitled to use them for specified transportation purposes. The assessee retained responsibility for running expenses, maintenance, drivers, taxes, permits, and transit risk. The agreements did not place the vehicles at the disposal of the companies in a manner that transferred effective control or possession.

Conclusion: There was no transfer of the right to use the buses and section 3F of the U.P. Trade Tax Act, 1948 was not attracted. The revision was dismissed.

---