https://www.taxtmi.com/caselaws?id=247643 A drilling contract was treated as a service arrangement rather than a transfer of the right to use goods because the assessee retained ownership and effective control of the drilling unit, deployed its own personnel, and carried out the operations itself. ONGC's designation of the drilling area and provision of certain supplies did not by itself show that control of the rigs had passed. For levy under a provision taxing transfer of the right to use goods, the decisive test is whether effective control passes to the transferee; mere physical custody, operational directions, or a restricted working arrangement is insufficient. On those terms, the transaction was not liable under Section 3-A of the Tamil Nadu General Sales Tax Act. en-us Fri, 22 Jul 2011 00:00:00 +0530 Wed, 13 Aug 2014 18:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=247643 A drilling contract was treated as a service arrangement rather than a transfer of the right to use goods because the assessee retained ownership and effective control of the drilling unit, deployed its own personnel, and carried out the operations itself. ONGC's designation of the drilling area and provision of certain supplies did not by itself show that control of the rigs had passed. For levy under a provision taxing transfer of the right to use goods, the decisive test is whether effective control passes to the transferee; mere physical custody, operational directions, or a restricted working arrangement is insufficient. On those terms, the transaction was not liable under Section 3-A of the Tamil Nadu General Sales Tax Act. Case-Laws VAT and Sales Tax Fri, 22 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=247643