Transfer of right to use goods fails where fixed hoardings remain immovable property and no effective control passes.

Hoardings erected on concrete foundations and fixed to the earth were treated as part of immovable property rather than detachable goods. Because they could not be removed without damage, were not physically delivered to the transferee, and remained under the owner's maintenance, upkeep, painting, insurance and repairs, there was no transfer of effective possession or control. On those facts, the letting arrangement did not amount to a transfer of the right to use goods under Section 3A of the Tamil Nadu General Sales Tax Act, and the turnover was held not taxable under that provision.

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Issues: Whether the turnover from letting out hoardings erected on concrete foundations was assessable under Section 3A of the Tamil Nadu General Sales Tax Act as a transfer of the right to use goods.

Analysis: The decisive question was whether the hoardings constituted goods capable of being transferred for use. The factual findings showed that the hoardings were erected on earth on concrete foundations, could not be removed without damage, were not physically possessed by the transferee, and remained under the respondent's maintenance, upkeep, painting, insurance, and repair. On these facts, the hoardings were treated as part of the immovable property and not detachable goods. In such a situation, there was no effective transfer of possession or control over goods, and therefore no transfer of the right to use goods within the meaning of Section 3A.

Conclusion: The turnover was not taxable under Section 3A, and the Revenue's challenge failed.

Ratio Decidendi: Hoardings fixed to the earth and incapable of removal without damage, where possession and effective control are not transferred, do not constitute goods for attracting levy on transfer of the right to use.

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