Hon'ble Judges/Coram:
S.P. Bharucha, V.N. Khare, D.P. Mohapatra, B.N. Kirpal and S.S.M. Quadri

JUDGMENT

V.N. Khare, J. (For himself and on behalf of S. P. Bharucha and D. P. Mohapatra, JJ.) (Majority view)

1. Despite the decisions of this Court in Builders' Association of India v. Union of India MANU/SC/0085/1989 : [1989]2SCR320 and Gannon Dunkerley & Co. v. State of Rajasthan MANU/SC/0437/1993 : (1993)1SCC364 , the controversy as regards the power of the State legislature to levy sales tax under Clause (29A)(d) of Article 366 of the Constitution in the context of the question where is the taxable event on the transfer of right to use any goods remained unresolved. In this group of cases, we are concerned with the power of States legislature to levy sales tax on the transfer of right to use any goods envisaged under Clause (29A)(d) of Article 366 of the Constitution on the premise that goods put to use are located within their States, Several States by their legislations have levied tax on the transactions of transfer of right to use goods on the location of goods at the time of their use within their States irrespective of the place where the agreement for such transfer of the right to use such goods is made. The questions therefore, that arise for consideration in these cases are, whether a State can levy sales tax on transfer of right to use goods merely on the basis that the goods put to use are located within its State irrespective of the facts that - (a) the contract of transfer of right to use has been executed outside the 4 State; (b) sale has taken place in the course of an inter-State trade; and (c) sales are in the course of export or import into the territory of India. The appellants' case is that, the State legislature cannot so frame its law as to convert an outside sale or a sale in the course of import or a sale in the course of an inter-State trade or commerce into a sale inside the State,

2. The appellants in civil appeals and the petitioners in the writ petitions filed under Article 32 of the Constitution and transferred petition, and respondent in Civil Appeal Nos. 6218-23/95 are the companies incorporated under the Companies Act and some have their registered offices at places outside the respondent States and others have inside the States. They carry on business of leasing diverse equipments. Accordin........