TaxTMI 
TaxTMI 
2014 (4) TMI 842
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....s of law have been raised, pressed and argued and therefore, all these revisions are being decided by this common judgment. "A. Whether on the facts and in the circumstances of the case, Trade Tax Tribunal is legally justified to hold that the plant and machinery attached to earth is not moveable property for taxing the transfer of right to use the goods under the provisions of Section 3F of the U.P.Trade Tax Act? B. Whether on the facts and in the circumstances of the case, Trade Tax Tribunal is legally justified to allow dealer's claim for exemptions on the amount received on account of rent for plant and machinery by ignoring the law laid down by the Hon'ble Supreme Court in the matter of S/S Sirpur Paper Mills Vs. Collecto....
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....ue. 4. It is, however, admitted that plants and machinery, in the case in hand, is such which is fixed or attached to earth or to the things embedded or attached to earth. Now the question which has to be considered, "whether these items can be held to be "goods" so as to attract tax liability under Act, 1948." 5. This question has been considered time and again by various courts including Apex court. The term "goods" is defined under Section 2(d) of Act, 1948 and reads as under: "'Goods' mean every kind or class of movable property and includes all material, commodities and articles involved in the execution of a works contract, and growing crops, grass, trees and things attached to, or fastened to anything permanently att....
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....th or not. The report submitted shows that plants and machinery of company were either embedded in the earth or permanently fastened to things attached to earth. On behalf of State, argument was raised that most parts of machinery are fixed to their bases with bolts and nuts, and can be removed by removing the nuts. It thus cannot be said that such machineries are permanently fastened inasmuch as, the same can be moved away by removing the nuts and hence should be held "movable property". The argument was noticed and rejected, by following House of Lords decision in Reynolds Vs. Ashby & Son, 1904 ACJ 466, wherein Lord Lindley has observed: "The purpose for which the machines were obtained and fixed seems to me unmistakable; it was to com....
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....te a fertilizer plant and the same was not embedded to dismantle and remove the same for the purpose of sale as machinery at any point of time. The facts as could be found also show that the purpose for which these machines were embedded was to use the plant as a factory for the manufacture of fertiliser at various stages of its production. Hence, the contention that these machines should be treated as movables cannot be accepted. Nor can it be said that the plant and machinery could have been transferred by delivery of possession on any date prior the date of conveyance of the title to the land." 10. The decision in Sirpur Paper Mills Vs. Collector of Central Excise Hyderabad (supra) was distinguished observing that it was on account of....
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....it on earth, though permanently, that is, when it is in use, it may not be regarded as immovable property, but not otherwise. 12. The term "permanently fastened or attached to earth" has to be read in the context for the reason that nothing can be fastened to earth permanently so that it can never be removed. When machines are attached to earth, not only they are attached for beneficial enjoyment of machines but also for beneficial enjoyment of land which is on lease. A similar question came up before Rajasthan High Court also in C.T.O. Vs. Sadulshahar Krai Vikrai Sahkari Samiti, 2004 (135) STC 90, and learned Single Judge, said in para 31 of the judgment, as under: "If a comprehensive reading is done of all the relevant provisions, t....
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....le and practicable manner. 15. Scientifically speaking, nothing can be treated immoveable. In the context of plants and machinery, where it is permanently fastened or attached to earth, it has to be seen from the point of utility also. If it cannot be used without being attached to earth, it may be immovable property in the industries like one up for consideration in this matter. Unless, such fastening is there, the plant and machinery cannot be put to a rational use. They generally do not move or taken away unless a particular plant and machinery has become obsolete or when the factory is closed or otherwise circumstances so warrant and the owner decide to remove and sell it. Such contingency do not arise every day. They are very rare a....