1996 (1) TMI 399

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....ct are directed against two orders dated March 24, 1995, passed by the Trade Tax Tribunal, Varanasi, in dealer's Second Appeal Nos. 707 of 1994 for the assessment year 1990-91 and 706 of 1994 for the assessment year 198990. The respondent is an automobile dealer. Apart from outright sales, it also made certain sales on hire-purchase basis. The dispute in these revision petitions is only about t....

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....respondent.   The definition of "sale", as amended by the U.P. Act No. 25 of 1985 with effect from February 2, 1983, includes within its scope the following types of transactions: "(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration, (ii) a transfer of property in goods (whether as goods or in ....

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.... system of hire-purchase or any system of payments by instalments amounts to sale and such a transaction has to be taxed when the goods are sold by that system. What the assessing officer, however, tried to tax was the hire charges received by the dealer from the purchasers. For this, he invoked section 3-F the relevant portion of which, as amended by the U.P. Act No. 31 of 1995 with effect from S....

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.... be declared for different goods or different classes of dealers." This section, on the very face of it, could not apply to the hire charges received under a contract of hire-purchase. The very title of section 3-F mentions that it relates to tax on the right to use any goods or goods involved in the execution of a works contract. There is no question of a works contract in respect of a sale of....