LN THE HIGH CQURT W.P.No...?:^..OF <••¥ ri, i-;f'<¥! 'i ^^ /J^ n ^/_i/' ^i^ 1 .s /\. M/s Raymond Ltd. Canent Division, Mahendra- Tower, E Wing, Panducang Budhakar Marg, WorU, MUMBAI^ Repiesented by : R. Narayanan, Director - Legal 2. Mr. M.L. Bapna S/o S.Bapna, aged 50 years Shajceholder of M/s Ravinoflds Ltd. Resident of Vedant Cofflplex, Vastok Nagar, ThanaWest. Versus 1. The Additiorial Comtnissioner, Comriiercial- Tax, .2. The Assistant Cormnissioner, Ccnnmefcial Tax 3. State ofChhattisgarh Through the Secretsuy, Finance Department, /^ ; ^* -S i 5f S •" .&'•^TITION UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA. i;I?i* .^•Ss.s^....... ^,, 'i'r HIGH COURT OF CHHATTISGARH : BILASPUR PETITIONERS RESPONDENTS WRIT PETITION N0.282 OF 2005 M/s Raymond Ltd. & Another Versus ' The. Additional Commissioner, Commercial Tax & Others (Writ Petition under Article 226 a.nd 227 of the Constitution of India) Single Bench : Hon'ble Shri Satish K. Agnihotri, J: Present:- Shri Ashish Shrivastava & Shri Harsh Wardhan, Advocates for the petitioners. Shri Sushil Dubey, Govt. Advbcate for the State. ORDER(ORAL) (Passed on this 5th day of May, 2011) 1. Heard learned counsel for the parties. 2. Learned counsel appearing for the petitioners submits that the issue involved in this petition is squarely covered by the ju'dgment and order passed by the Supreme Court in 20 Cenfury Finance Corpn. Ltd. and another v. State of Maharashfra . The conclusion of the Supreme Court is as under:- "35. As a result of the aforesaid discussion our conclusions are these: (a) The States in exercise of power under Entry 54 of List II read with Article 366(29-A)(d) are not competent to levy sales tax on the transferof right to use goods, which is a deemed sale, if such sale takes place outside the State or'is a sale in the course of inter- State trade or commerce or is a sale in the course of import or export. (b) The appropriate legislature by " creating legal fiction can fix situs of sale. In the absence of any such legal fiction the situs of sale in case-.of the transaction of transfer of right to use any goods would be the place where the property in goods passes, i.e., . where the written agreement transferring the right to use is executed. ' (2000) 6 SCC 12 ^ -<^ r'ssyi ^ l. (c) Where the goods are available for the transfer of right to use the taxable even on the transfer of right to use any goods is on the transfer which results in right to use and the situs of sale would be the place where the contract is executed and not where the goods are located for use. (d) In cases where goods are not in existence or where there is an oral or implied transfer of the right to use goods, such transactions may be effected by the delivery of the goods. In such cases the taxable event would be on the delivery of goods. (e) The transaction of transfer of right to use goods canriot be termed as contract of bailment as it ,is deemed sale within the meaning of the legal fiction engrafted in clause (29-A)(d) of Article 366 of the Constitution wherein the location or delivery of goods to put to use is immaterial". 3. Shri Shrivastava, learned counsel appearing for the petitioners, further submits that the identical issue came up for consideration before the High Court of Madhya Pradesh in M/s Raymond Limited and anotherv. Commercial Tax Officer, Circle I, Bilaspur & Others , wherein the Division Bench has disposed of the matter in the light of order passed by the Supreme Court in 20 Century Finance Corpn. Ltd.1. 4. Shri Dubey, learned Govt. Advocate appearing for the State, t submits that the issue involved herein is squarely covered by the decision of the Supreme Court in 20 Century Finance Corpn. Ltd. (supra), thus, the assessment and revisional orders passed by the authorities are not sustainable jn the eyes of law. 5. In view of foregoing, the assessment order dated 25-9-2001 and thereafter, the revisional order tfated 27-9-2004 are quashed. Accordingly, the writ petition is disposed of. , Gowri. SdA . SatishK.AgniUoari Judge W.A. No.1078/2007 (decided on21/10/2009)