2002 (3) TMI 705

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....ARAJ V. PATIL AND BISHESHWAR PRASAD SINGH, JJ. G. Prabhakar, Advocate, for the appellants.   S. Ganesh, Senior Advocate (P.S. Sudheer, Advocate, for K.J. John & Co., Advocates, with him), for the respondent.   JUDGMENT [Judgment per : Shivaraj V. Patil, J.]. - The only point urged by the learned counsel for the appellants before us is that there was a transfer of right to use....

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....e total amount realized or realisable by him by way of payment in cash or otherwise on such transfer or transfers of the right to use such goods from the lessee or licencee, pay a tax at the rate of five paise in every rupee of the aggregate of such amount realized or realisable by him during the year; Provided that no such tax shall be levied if the total turnover of the dealer including....

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....nding highly sophisticated and valuable imported machinery to the contractors engaged in the execution of the project work on specified hire charges; the machinery was given in the possession of the contractor and he was responsible for any loss or damage to it and in view of the terms and conditions contained in the agreement, there was transfer of property in goods for use and on the amounts col....

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....g to clauses 1, 5, 7, 13 and 14, it becomes clear that the transaction did not involve transfer of right to use the machinery in favour of contractors. The High Court was right in arriving at such a conclusion. In the impugned order, it is stated, and rightly so in our opinion, that the effective control of the machinery even while the machinery was in use of the contractor was that of the respond....