https://www.taxtmi.com/caselaws?id=441137 The HC allowed the appeal, holding that the agreement for hiring tankers to transport petroleum products did not amount to a transfer of the right to use goods under the MVAT Act. The court emphasized that mere possession and control for transportation services does not constitute transfer of the right to use the tankers. It relied on precedent requiring consensus ad idem, exclusive legal right, and exclusion of the owner's control for such a transfer, which were absent here. Clauses ensuring uninterrupted transportation did not imply transfer of usage rights. The Tribunal erred by selectively interpreting the contract and ignoring that effective control remained with the owner. Thus, the transaction was a service contract, not a deemed sale, and the levy of sales tax was unwarranted. en-us Tue, 01 Aug 2023 00:00:00 +0530 Fri, 08 Aug 2025 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441137 The HC allowed the appeal, holding that the agreement for hiring tankers to transport petroleum products did not amount to a transfer of the right to use goods under the MVAT Act. The court emphasized that mere possession and control for transportation services does not constitute transfer of the right to use the tankers. It relied on precedent requiring consensus ad idem, exclusive legal right, and exclusion of the owner's control for such a transfer, which were absent here. Clauses ensuring uninterrupted transportation did not imply transfer of usage rights. The Tribunal erred by selectively interpreting the contract and ignoring that effective control remained with the owner. Thus, the transaction was a service contract, not a deemed sale, and the levy of sales tax was unwarranted. Case-Laws VAT / Sales Tax Tue, 01 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441137