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2021 (5) TMI 34 - TRIPURA HIGH COURTLevy of VAT - transfer of right to use the machinery and equipments - Award of contract by ONGC under a work order - deduction of TDS on such transaction - HELD THAT:- It is an undisputed position that identical situation had come up before this Court and by a judgment in case of QUIPPO OIL AND GAS INFRASTRUCTURE LIMITED VERSUS THE STATE OF TRIPURA AND OTHERS [2014 (11) TMI 1070 - TRIPURA HIGH COURT] the Court had held that the transaction in question is not exigible to Value Added Tax. This was on the premise that according to the Court the contract comprised mainly of hiring of services and a very small element of transfer of right to use goods was involved. It was held that the intention of the parties was to treat the contract as a contract for hiring of services and it was not permissible to divide the contract into two separate parts namely of engagement of services and transfer of right to use the goods. The State of Tripura had challenged this judgment before the Supreme Court and the SLP was dismissed by an order dated 01.02.2017. Thus, this judgment has achieved finality and the issues so far as this Court is concerned must rest here. It is declared that the respondents shall not be competent to levy Value Added Tax on the transactions between the petitioner and ONGC which are in question. Since this Court had prevented the respondents from levying any such tax pending the petition, there shall be no question of refund - Petition allowed.
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