AIR 2003 SUPREME COURT 1147 ::2003 AIR SCW 695 ::2003 ALL. L. J. 678 ::2006 (4) Com LJ 309 SC ::(2006) 4 ComLJ 309 ::(2004) 170 ELT 385 ::(2003) 3 IndLD 198 ::(2004) 190 CurTaxRep 569 ::2003 (3) SCC 239 ::(2003) 1 Scale 615 ::2003 (1) KantLJ(Trib) 153 ::2003 (2) ACE 53 ::(2003) 130 STC 1 ::(2003) 1 SCR 785 (SC) ::2003 (1) SCR 785 ::2003 (1) LRI 508 ::2003 (1) SLT 754 ::(2003) 1 Supreme 819 ::2003 (3) SRJ 246 ::(2003) 1 JT 574 (SC)

Supreme Court Of India

(From : Allahabad)

Hon'ble Judge(s): S. S. M. Quadri, K. G. Balakrishnan , JJ

(A) Uttar Pradesh Trade Tax Act (15 of 1948) , S.3, S.3F— Rentals collected by Department of Telecommunications (DoT) from telephone subscribers - Exigible to tax under U.P. Trade Tax Act. W.P. No. 115 of 1995, D/- 13-9-1999 (All), Reversed.U.O.I. v. Secretary, 1999 (113) STC 203 (AP) and U.O.I. v. State, 2001 (123) STC 539 (P and H), Overruled. Rentals collected by the DoT (Department of Telecommunications) from the subscribers of telephone in the State of U.P. are liable to be assessed to tax under the U.P. Trade Tax Act. Under S. 3 read with S. 3-F of the U.P. Act the liability to pay tax, inter alia, on the 'the transfer of the right to use any goods' at the specified rate is on a dealer, as defined in S. 2(c) thereof. The DoT is a 'dealer' as defined in S. 2(c) of the U.P. Act and it collects rentals for the supply of transfer of use of telephone connection, which is compendiously called 'service' and the supply of telephone satisfies the requirements @page-SC1148 of a transfer of the right to use the goods within the meaning of 'sale' in S. 2(h), it also receives consideration, and therefore, the requirements of charging S. 3 read with S. 3-F of the U.P. Act are satisfied. (B) Uttar Pradesh Trade Tax Act (15 of 1948) , S.2(d)— Goods - Definition of....