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P. SAM KOSHY
Ultratech Cement Limited, a Company duly incorporated under the Companies Act, 1956, through its Authorized Signatory of the Company Shri Anil Purohit, S/o. Shri Suraj Prakash Purohit – Appellant
Versus
State of Chhattisgarh, through Secretary, Department of Commercial Taxes, Mantralaya Bhavan, Raipur (C. G. ) – Respondent
ORDER :
1. Challenge in the present Writ Petition is to the Order dated 30.5.2015 (Annexure P-6) whereby the Revisional Authority i.e. the Additional Commissioner, Commercial Tax, Raipur in Revision Case No.29/R/2015- Regional under Section 49(1) of the Chhattisgarh Value Added Tax Act, 2005 (for short, “the VAT Act”) has affirmed the Order dated 22.12.2014 (Annexure P-5) passed in Case No.104/2010-Regional by the Assessing Officer i.e. the Divisional Deputy Commissioner, Commercial Tax, Division-I, Raipur.
2. The issue involved in the instant case is the levy of Value Added Tax (for short, “VAT”) on the lease charges paid by the Railways Department to the Petitioner Company. The levy of tax was under Section 2(s)(vi) of the VAT Act for the assessment year 2009-10. The assessment for the year 2009-10 was completed on 22.12.2014. In the course of assessment, the Assessing Officer assessed the income of Rs.29,20,347/- as lease rent obtained by the Assessee from the Railways Department. Treating the said receipt of lease rent by the Petitioner Company from the Railways Department as deemed sale, tax was assessed on the above mentioned amount at the rate of 18% which came to around Rs.4,
The lease of a factory as a whole, including both movable and immovable properties, is not subject to sales tax under Section 3A of the TNGST Act.
The petitioner's appeal against the Assessment Order under sec. 23(4) of the MVAT Act was dismissed by the Court on the grounds of the availability of an alternative remedy and the presence of disput....
The court established that a transaction must involve effective control for it to be classified as a transfer of right to use goods, impacting tax liability.
Leasing hoardings is classified as a transfer of right to use goods, making it subject to VAT under Section 4(8) of the APVAT Act.
The transactions of leasing infrastructure equipment constitute services, not deemed sales, as effective control remains with the provider rather than transferring rights to the user.
Transactions involving site analyser machines are deemed sales, not taxable as supply of tangible goods for use due to the transfer of possession and effective control to the clients, exempting them ....
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