JUDGMENT

Shivaraj V. Patil, J.-The only point urged by the learned counsel for the appellants before us is that there was a transfer of right to use the machinery by the respondent in favour of the contractors by collecting hire charges looking to the clauses contained in the agreement. As such it was liable to pay sales tax under Section 5-E of The Andhra Pradesh General Sales Tax Act, 1957 (for short the Act ). On behalf of the respondent, the learned senior counsel made submissions supporting the impugned order pointing out to the various clauses contained in the agreement.

2. Section 5-E reads:-

"5-E. Tax on the amount realized in respect of any right to use goods-

Every dealer who transfers the right to use any goods for any purpose whatsoever, whether or not for a specified period, to any lessee or licencee for cash, deferred payment or other valuable consideration, in the course of his business shall, on the total amount realised or realisable by him by way of payment in cash or otherwise on such transfer or transfers of the right to use such goods from the lessee or licencee, pay a tax at the rate of five paise in every rupee of the aggregate of such amount realized or realisa