Pawan Hans Limited Vs Commissioner of Trade And Taxes (Delhi High Court)
Delhi High Court held that supply of helicopters to Andaman and Nicobar Islands Administration without transfer of right to use not exigible to tax under section 2(g)(vi) of the Central Sales Tax Act, 1956 [CST Act].
Facts- The present appeal instituted under Section 81 of the Delhi Value Added Tax Act, 2004 impugns a judgment passed by the Value Added Tax Appellate Tribunal dated 06 October 2022 in terms of which appeals preferred in relation to Financial Years 2006-07 to 2009-10 have come to be dismissed. The principal question which stood raised before the Tribunal was whether the supply of helicopters by the appellants to the Andaman and Nicobar Islands Administration constituted a “transfer of a right to use” and thus exigible to tax under Section 2(g)(vi) of the Central Sales Tax Act, 1956 and Section 2(zc)(vi) of the DVAT Act.
Conclusion- The flight as well as the equipment was to be exclusively managed and regulated by the appellant and the flights were to be operated by personnel who were in their employment. There was no contractual relationship that existed between those operators and staff on the one hand and the A & N Administration on the other. Additionally, the obligation to keep the equipment insured was also one which stood placed upon the appellant. There was also no transfer of permits and licenses which were necessarily required in order to undertake the operations contemplated under the agreement. Those permits and licenses undisputedly remained in the hands of the appellant.
