COMMISSIONER, TRADE TAX Vs. SRI RAM

JUDGEMENT

(1.) PRESENT revision under Section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act') is directed against the order of Tribunal dated April 6, 2004 relating to the assessment year, 1999 -2000.

(2.) THE brief facts of the case are that the opposite party was the owner of the bus No. U.P. 56 -3625 and provided the said bus to UPSRTC under the agreement dated August 27, 1997. The assessing authority levied the tax on the amount received towards hire charges from UPSRTC for providing the bus under Section 3F of the Act. Against the assessment order, opposite party filed appeal before the Joint Commissioner (Appeals), Trade Tax, Gorakhpur, which was dismissed. Opposite party further filed appeal before the Tribunal. The Tribunal by the impugned order, allowed the appeal and deleted the tax levied under Section 3F of the Act.

(3.) LEARNED Standing counsel submitted that as per Clause 1 of the agreement during the period of the agreement, the possession of the vehicle was under the control of the UPSRTC. Thus, under the agreement there was transfer of right to use the bus by the opposite party to UPSRTC and, thus, the amount received towards hire charges has rightly been assessed to tax under Section 3F of the Act. Learned Counsel for the opposite party relied upon the order of the Tribunal. In support of his contention he relied upon the decision of the apex court in the case of Bharat Sanchar Nigam Ltd. v. Union of India reported in [2006] 145 STC 91 : [2006] 3 VST 95 : [2006] 29 NTN 307.