TaxTMI 
TaxTMI 
2014 (1) TMI 1617
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.... the issue involved in all the writ petitions is the same. 2. The petitioners in all these writ petitions are either the owners of vehicles which were used to transport goods or were the agents who arranged for the transportation of goods in trucks owned by other persons. By means of the impugned orders value added tax has been levied and deducted. The Revenue has come to the conclusion that the TVAT is leviable on the ground that the agreement for transportation of goods amounts to sale within the meaning of the TVAT Act. 3. The undisputed facts are that foodgrains which were meant for public distribution system (PDS) were transported to various places within the State of Tripura by use of trucks either owned by the petitioners or ar....
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....ry or supply is made, but does not include a mortgage, hypothecation, charge or pledge. (ii) 'Purchase' with all its grammatical variations and cognate expressions means any transaction of acquiring property in goods against valuable consideration or deferred payment by a dealer on purchase of taxable goods as mentioned in Schedule VIII including any sum charged for, (a) anything done by the seller with or in respect of the goods at the time of or before delivery thereof; and (b) containers or other materials for the packaging of such goods." As far as clause (b) is concerned that only relates to the execution of the works....
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....ally been paid to the dealer during the period, shall be taken into account for determining the turnover for that period." This section is similar to section 2(25) of the TVAT Act. Section 3A has been interpreted by one of us (Deepak Gupta, C.J.) in the following terms: "11. Section 3A basically relates to execution of works contract and by a deeming fiction the meaning to the phrase 'transfer of property in goods' has been expanded so as to include those goods which are used in the execution of the works contract within the ambit of the definition of the word 'sale'. The essential feature of section 3A is that if during the execution of the ....
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....e any connection with a works contract are liable to be taxed. The transporter is not a party to the works contract. The amount which the transporter receives, even if section 3A is given widest interpretation, may be included in the sale value for purpose of taxation in the hands of the person executing the works contract, but the transporter is not liable to pay tax. There is no transfer of property of the goods whatsoever and the transporter is only carrying goods from one station to the other on behalf of the Public Works Department. Therefore, the interpretation given by the learned lower appellate court is totally perverse." 5. We are clearly of the view that the phrase "transfer of property in goods" has been expanded in the conte....