AHUJA GOODS AGENCY Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) THIS petition raises a ticklish but an interesting question for consideration whether transportation charges received by the petitioner - a transporter - from respondent No. 3 - a distillery - engaged in the business of manufacture of Indian made foreign liquor in connection with the transportation of India made foreign liquor from the distillery to various Government bonded warehouses, are liable to tax under section 3-F of the U. P. Trade Tax Act, 1948 (briefly, "the Act" ).

(2.) ARTICLE 366 of the Constitution of India came to be amended by the Constitution (Forty-sixth Amendment) Act, 1982. By the Amending Act, 1982, clause (29a) was inserted in article 366. Clause (29a), sub-clause (d) of article 366, which is relevant for the purpose of this case runs as under : " (29a) 'tax on the sale or purchase of goods' includes - (a) to (c ). . . . . . . . . (d) a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. "

(3.) THE contention of the petitioner is that transportation charges were being paid by respondent No. 3 for service under the agreements deed and that there was no transfer of the right to use the vehicles of the petitioner. It is contended that the petitioner does not have any vehicle of its own and that to fulfill the agreements it arranged vehicles from the open market for the use of respondent No. 3 and that since the petitioner has no vehicle of its own it could not have transferred the right to use of any vehicle to respondent No. 3