- HC allows writ petitions, holds assessee (dealer of Vadilal products) entitled to Form-C for purchase of tricycles and deep-freezers from outside State, at concessional CST;
- Notes that said goods were included in registration certificate issued u/s 8(3)(b) of CST Act and in turn were given to distributors and sub-dealers on lease rent basis, which amounted to ‘transfer of right to use goods’; By deeming fiction, definitions of “sale” u/s 2(g) of CST Act and u/s 2(ac)(iv) of U.P. VAT Act include transfer of right of use any goods for any purpose, and a perusal of Sec 3(6)(a) of VAT Act indicates that sales turnover also includes lease rent in case of such transfer;
- Hence, Sec 3 of U.P. VAT Act r/w Rule 10 of U.P. VAT Rules makes it “absolutely clear that the “transfer of right to use any goods” is considered to be a sale and any amount received as lease rent is subjected to payment of VAT under the VAT Act.”, concludes HC;
- States that deep-freezers and tricycles were clearly intended “for resale” in same form, as contemplated u/s 8(3)(b) of CST Act, while finding rejection of assessee’s application for Form-C issuance on account of amendment to registration u/s 7(4) of CST Act erroneous : Allahabad HC