BOMBAY TARPAULIN MERCHANTS' ASSOCIATION Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Ferdino I.Rebello Rule. Heard forthwith.

(2.) Petitioner No. 1 appears to be an association of traders engaged along with others in the activities of providing temporary tarpaulin sheds to industrial concerns. It is the contention of the association that they look after general welfare activities of the members of the association. Petitioner No. 2 is a partnership firm which is a member of petitioner No. 1 and is also involved in the same activities as carried out by other members of petitioner No. 1. Petitioner No. 2 is engaged in the activity of providing services of temporary sheds to its customers. For that purpose, petitioner No. 2 maintains stock of shed materials like bamboos, bullies, tarpaulin, coir and other materials. On receipt of order to provide temporary shed to cover the given area or object, the concerned person takes material on site, applies his labour and gets the shed erected covering the given area or object. Petitioner No. 2 is also required to maintain the shed during the contract period of providing shed services. The charges are in terms of the agreed rates and are based on per square-foot area of the constructed shed.

(3.) The respondent-State enacted the Maharashtra Sales Tax on Transfer of Right to Use any Goods for any Purpose Act, 1985 (hereinafter referred to as, "the Act"). By virtue of the provisions of the said Act, the tax is attracted on goods which are mentioned in the Schedule appended to the Act. The Schedule to the Act was amended on May 1, 2001 and entry 22 in the nature of residuary entry was inserted in the Act. Due to this insertion, leasing of any goods not covered by earlier entries 1 to 21 became liable to tax.