9911796707
TMI Blog2001 (9) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... he Constitution of India and the new charging section 5E and section 2(1)(e), 2(1)(n), 2(1)(q) and 2(1)(s) of the APGST Act as amended by A.P. Act 18 of 1985, are ultra vires and violative of articles 19(1)(g) and 300 of the Constitution of India. 2.. The first petitioner in both the writ petitions are public limited companies incorporated under the Companies Act, 1956. They carry on business in extending finance facilities in respect of hire purchase and leasing transactions in the State of Andhra Pradesh and other States. The second petitioner in both the writ petitions are the share-holders of the respective first respondent-companies. According to the petitioners, in the course of their business, the first petitioner is extending fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business shall, on the total amount realised or realisable by him by way of payment in cash or otherwise on such transfer or transfers of the right to use such goods from the lessee or licensee, pay a tax at the rate of eight paise on every rupee of the aggregate of such amount realised or realisable by him during the year; (b) the transfer of right to use any such goods entered into by any dealer, shall be deemed to have taken place in this State whenever the goods are used within the State, irrespective of the place where the agreement whether written or oral for such transfer of right is made: Provided that no such tax shall be levied if the total turnover of the dealer including such aggregate is less than rupees two lakhs." Simul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 366 of the Constitution of India. The language employed in sub-clause (d) of clause (29A) is quite clear and unambiguous, and it does not admit more than one meaning. In terms of clause (29A) read with sub-clause (d), it includes 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. The contention of the learned counsel for the petitioners is that in service contracts there was no parting with the ownership of the goods permanently in favour of the lessee and the lessee is bound to return the goods to the lessor after the user of the goods for a specified period and that is the distinguishing feature between the works contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
