2019 (2) TMI 134

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....the tax on such a transaction cannot be levied in the State of U.P. 2. Whether the learned Tribunal was justified in not considering that the sale and deemed sale are part of the same transaction and are belonging to the same category as such in view of Clause 29-A Article 366 of the Constitution it cannot be treated separately for the purpose of taxation. 3. Whether the learned Tribunal was justified in not considering that the levy of tax is on transfer of right to use the goods and the lease rentals received by the applicant is Delhi Office does not fall within the category of "goods" as defined in Section 2-(d) of the Act. 4. Whether the learned Tribunal was justified in claiming interest on a transaction whic....

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....ion 3- AAA or Section 3-D but subject to the provisions of Sections 14 and 15 of the Central Sales Tax Act, 1956, every dealer shall, for each assessment year, pay a tax on the net turnover of- (a) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment of other valuable consideration; or (b) xxxx at such rate not exceeding fifteen percentum as the State Government may, by notification, declare and different rates may be declared for different goods or different classes of dealers. (2) For the purposes of determining the net turnover referred to in subsection (1), the following amounts shall be deducted from the total amount received or receivable b....

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....eventh Schedule and, therefore, we direct that clause (ii) of Explanation I of Section 2 (h) of the Act shall be read down to this effect that it would not be applicable to the transaction of transfer of right to use any goods if such deemed sale is (i) an outside sale, (ii) sale in course of the import of the goods into or export of the goods out of the territory of India and (iii) an inter-State sale. 53. Following what we have stated above, we are of the opinion that the decision of the Bombay High Court in 20th Century Finance Corporation Ltd. Vs. State of Maharashtra (1989) 75 STC, 217 (under appeal) is erroneous, whereas, we affirm the decision of the Andhra Pradesh High Court in ITC Classics Finance & Services vs. Commission....