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TMI Blog2007 (8) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... th the statutory interest at the rate of six per cent per annum from the date of reduction of the amount. The provision of rule 3A(2) of the Rules is ultra vires of the Act. We have only to reiterate that transportation of foodgrains from Gauhati to Agartala or any other place in Tripura is not a "deemed sale" for the purpose of the Act, not because it is an inter-State sale to which State law does not apply, as held by the learned single judge, but because in a mere transportation of goods of another by a carrying contractor there is absolutely no transfer of any right to use goods, no matter whether such transportation is interState or intra-State. Consequently, no tax can be levied on such transactions. - Writ Appeal Nos. 120, 121, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of any transfer of right to use any goods, to deduct tax payable under the Act from the amount payable for such transfer. This direction of the Commissioner and the vires of rule 3A(2) of the Rules came under challenge in several writ petitions instituted by the carrying contractors, the private appellants herein, raising the basic question whether in a transaction of mere transportation of goods from one place to another any transfer of right to use goods takes place at all within the meaning of sale defined in section 2(g)(ii) of the Act. The other important question the court was called upon to decide is whether in the absence of any charging provision in the Act for realisation of tax on such deemed sale at source, rule 3A(2) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount. We entirely agree with the same and accordingly we allow this group of appeals of the private appellants setting aside and quashing the aforementioned decision of the learned single judge in the judgment impugned. In the other group of appeals on hand preferred by the State-appellants, the challenge is to the following decisions of the learned single judge in the judgment impugned. (i) The provision of rule 3A(2) of the Rules is ultra vires of the Act; (ii) Carrying of goods from Gauhati (Assam) to Agartala (Tripura) is to be termed as inter-State sale to which the provisions of the Act or the Rules do not apply. Consequently, such transaction cannot be a deemed sale within the meaning in section 2(g)(ii) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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