Tarun Agarwala, J. - (1.) The petitioner is a Limited Company incorporated under the Companies Act, 1956 and is engaged in the business of purchase and sale of various items from Vadilal Industries Limited such as ice -creams, processed food, frozen food, frozen desserts, mango pulp, etc. The petitioner is registered as a "dealer" under the U.P. Value Added Tax Act, 2008 (hereinafter referred to as the "VAT Act") and, after purchase of the aforesaid goods, the same is sold through its chain of distributors all over the State of U.P.
(2.) The petitioner has been given a certificate of registration under Sec. 8(3)(b) of the Central Sales Tax Act (hereinafter referred to as the "Act") in which it is indicated that deep -freezers and tricycles are intended for re -sale by the petitioner in the State of U.P. The petitioner is dealing in perishable items which has a limited shelf life and, in order to extend the shelf life and proper preservation, the petitioner accordingly provides deep -freezers and tricycles on lease to its distributors and dealers. On these tricycles small freezers are mounted and hawkers are appointed by the distributors or dealers of the petitioner in order to keep the product in a saleable and marketable condition.
(3.) These deep -freezers and tricycles are purchased by the petitioner from outside the State of U.P. from various manufacturers of deep -freezers and tricycles. On the strength of the registration certificate granted under Sec. 8(3)(b) of the Act, the petitioner is entitled to purchase the deep -freezers and the tricycles from the manufacturers outside the State of U.P. at a concessional rate of tax against issuance of Form -C from its assessing authority. The petitioner contends, that it provides deep -freezers and tricycle to its distributors and dealers on lease rent basis and for this purpose the petitioner has entered into a lease agreement with its distributors and dealers. The lease agreement provides that the ownership of the deep -freezers and tricycles are never transferred and the same could be used by the distributors and dealers only for the purpose of storing the ice -creams, processed food, frozen food etc. supplied by the petitioner. After the termination of the lease period, the lessee are required to return the deep -freezers and the tricycles to the petitioner and thereafter the said product is given to another dealer or distributor on fresh lease agreement. The deep -freezers and tricycles given on lease rent basis is a transfer of right to use the products for which the petitioner deposits the due taxes as and when it is due.;