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Rashtriya Ispat Nigam Ltd. vs Commercial Tax Officer, Company ... on 15 December, 1989

"9. Thus if the transaction is one of leasing/hiring/letting simpliciter under which the possession of the goods, i.e., effective and general control of the goods is to be given to tiie customer and tne customer has the freedom and choice of selecting the manner, time and nature of use and enjoyment, though within the frame work of the agreement, fhen it would be a transfer of the right to use the goods and fall under the extended definition of "sale". On the other hand, if the customer entrusts to the assessee the work of achieving a certain desired result and that involves the use of goods belonging to the assessee and rendering of several other services and the goods used by the assessee to achieve the desired result continue to be in the effective and general control of the assessee, then, the transaction will not be a transfer of the right to use goods falling within the extended definition of "sale". Let me now clarify the position further, with an illustration which is a variation of the illustration used by the Andhra Pradesh High Court in the case of Rashtriya Ispat Nigam Ltd. v. Commercial Tax Officer.
Andhra HC (Pre-Telangana) Cites 12 - Cited by 41 - S S Quadri - Full Document
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