Out-of-State lease rent tax levy under Haryana sales tax law cannot extend to transactions outside the State.

Levy of tax on lease rent arising from transfer of the right to use goods outside Haryana was held unsustainable under the Haryana General Sales Tax Act, 1973, because the relevant note was already found inapplicable to transactions occurring outside the State in the connected writ petition. The court disposed of the matter on the same terms as that earlier decision, with the result that the levy could not extend to out-of-State transactions and relief was granted to the assessee.

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Issues: Whether the levy of tax on lease rent arising from transfer of right to use goods outside the State of Haryana could be sustained under the Haryana General Sales Tax Act, 1973.

Analysis: The challenge was covered by the earlier decision in the connected writ petition, where the applicability of the relevant note to transactions taking place outside the State was negatived. The present petition was therefore disposed of in the same terms as that decision.

Conclusion: The levy to the extent of including transactions taking place outside the State of Haryana could not be sustained, and the petition was allowed in favour of the assessee.

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