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254 Goods & Services Tax Cases - Reports [Vol. 1
FACTS
The assessee was a trading company and through an agreement with
Indian Oil Corporation, it agreed to provide transport facility to the oil
company. The Assessing Officer was of the view that the assessee had
earned money by carrying on the business with oil company and levied
tax. On appeal, the first appellate authority deleted such addition. On
further appeal, the Tribunal dismissed the appeal observing that as per the
contract, it was for the oil company to use or not to use the tankers and the
assessee was having no control over the movement of the tankers.
On revision :
HELD
The Tribunal had followed the decision of the jurisdictional High Court in
Indian Oil Corpn. v. Commissioner, Trade Tax where it was observed that
there was no ‘sale’ of tankers by the assessee to the oil company. So, no tax
was to be levied. Thus, the impugned order of the Tribunal was to be
sustained. [Para 3]
CASE REFERRED TO
Commissioner, Trade Tax v. Sharma Tourist Transport [2005] 42 STR 927 (All.)
(para 3).
Sanjay Sarin for the Revisionist.
ORDER
1. All the revisions have been filed by the department under section 11 of
the U.P. Trade Tax Act, 1948 against the consolidated judgment and order
dated 19-6-2006 passed by the Trade Tax Tribunal, Lucknow for the
assessment years mentioned above.
2. I have heard Shri Sanjay Sarin, learned counsel for the department.
None appeared for the assessee.
3. The brief facts of the case are that the assessee has entered into an
agreement with Indian Oil Corporation for transportation of the goods/
products manufactured by the Indian Oil Corporation. The assessee has
provided the tankers for this purpose. The Assessing Officer opined that
the assessee had earned money by carrying on business with the Indian Oil
Corporation by giving the rights to use its tankers to the Indian Oil
Corporation for transportation of its products, so the money earned by the
tankers is leviable. The Assessing Officer has levied the tax by the
assessment order. Being aggrieved, the assessee has filed appeals before
the First Appellate Authority who has deleted the addition. Not being
satisfied the department has filed appeal before the Tribunal who has
dismissed the appeal filed by the department by observing that as per the
contract, it is for the Indian Oil Corporation to use or not to use the tankers.
The assessee has no control over the movement of the tankers. In the case
of Indian Oil Corpn. v. Commissioner, Trade Tax, it was observed that this
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 130
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