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TMI Blog2000 (7) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... or the lease of machineries. Ashok Leyland Ltd. also had leased out the machineries. Assessment order was passed against them on February 29, 2000 on the turnover relating to the transaction of lease. The petitioners would contend that the assessing authority has levied tax on these petitioners following the decision of this Tribunal in Upasana Finance Ltd. v. State of Tamil Nadu [1999] 113 STC 403 on the basis of the location of the machineries given on lease, but the apex Court in Civil Appeal No. 4500 of 1989 dated May 9, 2000 has reversed the decision in 20th Century Finance Corporation Ltd. v. State of Maharashtra [1989] 75 STC 217 (Bom) which was relied upon by this Tribunal to uphold the validity of section 3-A of the Tamil Nadu Gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but as this view of the Tribunal has been dissented by the apex Court in the abovesaid Civil Appeal No. 4500 of 1989 (20th Century Finance Corporation Ltd. v. State of Maharashtra) [2000] 119 STC 182 laying down the principle that the situs of sale is not with reference to the place of the goods to be used, but the place where the written agreement transferring the right to use was executed and in the case of oral or implied transfer when the goods were not in existence, the taxable event would be on the delivery of the goods and as these dictums have come from the judgment of the apex Court only on May 9, 2000 subsequent to the order of assessments, the necessity has arisen to direct the assessing authority to pass orders afresh according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods. In such cases, the taxable event would be on the delivery of goods. (e) The transaction of transfer of right to use goods cannot be termed as contract of bailment as it is deemed sale within the meaning of legal fiction engrafted in clause (29A)(d) of article 366 of the Constitution wherein the location or delivery of goods to put to use is immaterial." 3.. It is pertinent to mention at this stage that all these petitioners have filed appeals before the Appellate Assistant Commissioner against the orders of assessments. On a reading of the assessment orders against the assessee-Sundaram Finance Ltd., inner page 4 of the assessment order shows that the assessee had taken three contentions, namely, (1) the lease of the goods wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4.. In so far as the petitioner-Ashok Leyland Ltd. is concerned, the assessment order reads as follows: "The dealers' contention that the goods were actually delivered direct to the customers from outside the State would be clearly evident and in other words, the goods satisfy the condition of movement as contemplated under section 3(a) of the Central Sales Tax Act, 1956 and can be characterised only as an inter-State movement and by no stretch of imagination, be treated as local sale, is not acceptable as the goods referred are the property of the dealers and the dealers have collected lease rentals of the goods, purchased from dealers outside the State, have not suffered tax under the Tamil Nadu General Sales Tax Act which is assessab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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