Search Results Page
Search Results
1 - 4 of 4 (0.46 seconds)Industrial Oxygen Company Pvt. Ltd. vs State Of Andhra Pradesh on 11 December, 1991
5. The Hon'ble Andhra Pradesh High Court in the case of Industrial Oxygen Co. Pvt. Ltd (supra) held that amounts, received by way of rent on delayed return of cylinders to be exigible to tax upon a finding that under the contract agreement in force between the parties, there was a transfer of goods possession of which remained with the buyer so as to attract the provisions of Section 5E of the Andhra Pradesh General Sales Tax Act.
Section 5E in Andhra Pradesh General Sales Tax Act, 1957 [Entire Act]
Asiatic Gases Ltd. vs State Of Orissa And Ors. on 21 September, 2000
6. A perusal of the contract agreement between the parties would amply reveal that the transfer of the property in the cylinder was not for any period of fixed duration. Though the property in the cylinders always remained with the manufacturers/sellers, what was intended is, transfer of the right of use of such property subject to payment as per terms of the agreement. The parties contemplated that there would be initially a rent free period of 15 days, whereafter rent would be charged at the rates, stipulated in the contract agreement. That the transfer of the right to use the property was for a period of 15 days, has not been spelt out clearly by terms of the agreement and has sought to be advanced only in the pleadings made in the writ petition. Such an intention must be clear from the terms of the contract agreement so as to enable this Court, as in the case of Asiatic Gases Limited (Supra), to hold that the parties had intended to transfer the right to use the goods only for 15 days and any retention of the cylinders beyond the period of 15 days would be in breach of the agreement between the parties entailing payment of penalty/penal rent.
1