TaxTMI 
TaxTMI 
2013 (3) TMI 580
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....rectly passed an order that the lease rental for the entire lease period is a sale price when the appellant delivered the goods, therefore, the lease amount received or receivable would be quantified as turnover?" The facts are not in dispute. The appellant entered into an agreement for lease of the vehicles. The Assessing Authority held vide order dated March 24, 2008 that the amount to be paid for the entire term of lease shall be included as turnover for the month when the vehicle was delivered to the lessee. The appeal against the said order was dismissed by the Joint Excise and Taxation Commissioner on August 25, 2009 and further appeal by the Tribunal on September 10, 2012. The learned counsel for the appellant has argued that the provisions of the Haryana Value Added Tax Act, 2003 (for short, "the Act") are in terms of article 366(29A)(d) of the Constitution, which provides for tax on the transfer of the right to use any goods for any purposes. It is contended that in 20th Century Finance Corpn. Ltd. v. State of Maharashtra [2000] 119 STC 182 (SC); [2000] 6 SCC 12, interpreting the said provisions, the Supreme Court held that the incidence of tax is not delivery of the goo....
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....or any other sum under this Act or the Rules made thereunder; ... (r) 'goods' means every kind of movable property, tangible or intangible, other than newspapers, actionable claims, money, stocks and shares or securities but includes growing crops, grass, trees and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. ... (u) 'gross turnover' when used in relation to any dealer means the aggregate of the sale prices received or receivable in respect of any goods sold, whether as principal, agent or in any other capacity, by such dealer and includes the value of goods exported out of State or disposed of otherwise than by sale; Explanation.-(i) The aggregate of prices of goods in respect of transactions of forward contracts, in which goods are actually not delivered, shall not be included in the gross turnover. (ii) Any amount received or receivable or paid or payable on account of variation, escalation or de-escalation in the price of any goods sold previously to any person, but not exactly determinable at that time, shall, subject to such conditions and restrictions, as may be prescribed, be i....
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....#39; means a period of time usually a month, a quarter or a year for which tax payable by a dealer is quantified; and (zg) 'turnover' means aggregate of value of goods sold or purchased or exported out of State or imported into State or supplied or received, as the case may be, by a dealer during a tax period." In terms of article 366(29A)(d) of the Constitution, sale includes sale and purchase of goods including the transfer of the right to use in goods for any purpose whether or not for a specific period for cash, deferred payment or other valuable consideration. The "sale", as defined under the Act is in tune with the said provisions in the Constitution. In terms of the provisions of the Constitution and the Act, sale and purchase of the goods by fiction of law would include right to transfer of goods in respect of any lending transaction. Thus the transaction of lease is a deemed sale, but whether the gross turnover is to be quantified in respect of the lease rentals received or receivable during the year or the entire lease rentals to be received during the entire period of lease would form part of gross turnover of the year is the question requires to be examined. ....
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....act in respect thereof is also required to be executed. Given that, the locus of the deemed sale is the place where the right to use the goods is transferred. Where the goods are when the right to use them is transferred is of no relevance to the locus of the deemed sale. Also of no relevance to the deemed sale is where the goods are delivered for use pursuant to the transfer of the right to use them, though it may be that in the case of an oral or implied transfer of the right to use goods, it is effected by the delivery of the goods. 27. Article 366(29A)(d) further shows that levy of tax is not on use of goods but on the transfer of the right to use goods. The right to use goods accrues only on account of the transfer of right. In other words, right to use arises only on the transfer of such a right and unless there is transfer of right, the right to use does not arise. Therefore, it is the transfer which is sine qua non for the right to use any goods. If the goods are available, the transfer of the right to use takes place when the contract in respect thereof is executed. As soon as the contract is executed, the right is vested in the lessee. Thus, the situs of taxable event of....