Transfer of right to use goods tax depends on first proving the subject matter is goods, not immovable property.

Tax under section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005 arises only where the assessing authority first establishes as a jurisdictional fact that the subject matter is goods and that there is a transfer of the right to use those goods. Hoardings, unipoles, steel structures and vinyl sheets may fall outside the provision if they are immovable property, since immovable property is not goods under section 2(16). The nature of the item depends on annexation, fastening and whether it can be dismantled and re-erected without destruction. Because the assessment orders did not clearly determine these foundational facts, they were not sustained and were directed to be reconsidered after fresh notice and opportunity.

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Issues: Whether the assessment orders could be sustained without first determining whether the hoardings, unipoles, steel structures or vinyl sheets constituted goods or immovable property, and whether the transactions amounted to a transfer of the right to use goods exigible to tax under section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005.

Analysis: Tax under section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005 is attracted only when there is a transfer of the right to use goods taxable under the Act. Transfer of the right to use immovable property does not fall within that provision because immovable property is not goods within section 2(16). Whether the article in question is movable or immovable depends upon the degree and object of annexation, the nature of fastening, and whether the item can be dismantled and re-erected without destruction. On the facts, the essential jurisdictional facts were not clearly discernible from the assessment orders, and the authority had not first determined the true nature of the items and the transaction.

Conclusion: The impugned assessment orders were not sustained. The matters were required to be reconsidered by issuing a fresh show-cause notice, giving the petitioner an opportunity to object, and then passing fresh assessment orders in accordance with law.

Ratio Decidendi: Tax under section 4(8) can be levied only after the assessing authority establishes as a jurisdictional fact that the subject matter is goods and that there is a transfer of the right to use such goods, not immovable property.

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