9911796707
TMI Blog2014 (1) TMI 1617X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the execution of the works contract. This expansion of the definition can however not bring within its ambit the mere transportation of goods. When a person transports goods on behalf of the consigner or the consignee there is no transfer in the property of goods either directly or by inference. A contract to transport goods from one place to another is not a works contract. The amount which a transporter receives may be included in the sale value for calculating the taxable turnover but by no stretch of imagination can the transporter be held liable to pay tax. We are, therefore, clearly of the view that the deduction of tax on the amount paid to the transporters/petitioners is illegal and is liable to be quashed and the same is ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The undisputed facts are that foodgrains which were meant for public distribution system (PDS) were transported to various places within the State of Tripura by use of trucks either owned by the petitioners or arranged by them. The short question involved is whether this contract by which the petitioners had agreed to transport the goods amounts to sale within the meaning of the TVAT Act or not. Sale has been defined in section 2(25) of the TVAT Act which reads as follows: (25)(i) 'Sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods (other than by way of a mortgage, hypothecation, charge or pledge) by one person to another in the course of trade or busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the works contract and is not applicable in the present case. Similarly, clause (c) is also not applicable because there is no delivery of goods on hire purchase or other system of payment by instalments. There is no transfer of the right to use any goods. 4. Transfer of goods is totally different from transportation of goods. It appears that the revenue in the State of Tripura is under the mistaken belief that the word transfer in the Act includes transportation of goods. There is no transfer in the property of goods when a person transports those goods on behalf of the consigner or the consignee. Section of 3 of the TVAT Act is the charging section and makes any dealer in taxable goods liable to pay tax in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the Act. In the Explanation, it has been stated that 'property in goods' shall mean the aggregate of the goods for which amounts have been received or receivable by a dealer during such period as valuable consideration whether or not such amount has been separately shown in the works contract. The amount so received shall include the value of such goods purchased, manufactured, processed or procured by the dealer and the cost of freight or delivery as may be incurred by such dealer for carrying such goods to the place where these are used in execution of such works contract. 12. It is clear from the reading of the Explanation that for section 3A to be attracted, first of all, there should be works contract which basica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g within its ambit the mere transportation of goods. When a person transports goods on behalf of the consigner or the consignee there is no transfer in the property of goods either directly or by inference. A contract to transport goods from one place to another is not a works contract. The amount which a transporter receives may be included in the sale value for calculating the taxable turnover but by no stretch of imagination can the transporter be held liable to pay tax. We are, therefore, clearly of the view that the deduction of tax on the amount paid to the transporters/petitioners is illegal and is liable to be quashed and the same is accordingly quashed. The tax which has been deducted shall be refunded to the petitioners along with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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