2007 (8) TMI 681

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....court in W.P. (C) No. 237 of 1999 and 10 other similar cases, we propose to dispose of them by this common judgment.   The private appellants, who are carrying contractors by profession, were engaged in 1999 by the Food Corporation of India (for short, "the FCI") for transportation of foodgrains from Guwahati, Churaibari and Dharmanagar to its different godowns in the State of Tripura. By a communication dated January 16, 1999 followed by similar others, the Commissioner of Taxes, Tripura, directed the FCI to realise four per cent sales tax from the carrying contractor's bills presumably proceeding from the premises that in such transactions transfer of right to use goods occurs, which is a "deemed sale" falling in the tax net i....

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....rieved, the private appellants have challenged the said decision in the present group of appeals on hand filed by them. We would first decide the group of appeals of the private appellants. The only question raised in this group of appeals is whether mere transportation of goods from one place to another by carrying contractors can be said to be a "deemed sale" within the definition of clause 2(g)(ii) of the Act. This question need not detain us in view of a decision precisely on this question by a Division Bench of this court in Writ Appeal No. 67 of 2002. It was decided in that appeal that "there is no transfer of any right to use property in any goods in a pure and simple carrying contract so as to bring the transaction within the pur....