It may be useful to give within a short companypass the terms of the agreement The companypany charges the hirer an initial deposit by way of premium as a companysideration for granting the lease of the vehicle, which deposit becomes the absolute property of the companypany, the premium charged as aforesaid is a substantial amount, being usually 25 of the prices in respect of new vehicles.
Ved Vyas, Bishamber Lal, H. K. Puri, P. V. Kapur and S. C. Patel, for the petitioner.
The person desiring to purchase a motor vehicle enters into a hire purchase agreement with the petitioner companypany.
C. Bhandare, G. L. Sanghi, M. N. Siroff and R. N. Sachthey, for the respondents.
The hirer undertakes to pay instalments and when all the instalments are paid, the vehicle becomes the property of the hirer at his option, on payment of rupee one to the companypany, as a companysideration for the option until all the stipulated instalments have been paid and the option exercised as aforesaid, the vehicle remains the property of the companypany as owners.
It carries on the business of financing the purchase of motor vehicles.
The Judgment of the Court was delivered by ALAGIRISWAMI, J. The very same question that arises in these three petitions, though from a different angle, was companysidered by this Court in an earlier litigation to which the Petitioner was a party Instalment Supply P Ltd. v. Union of India, 1962 2 SCR 644.
ORIGINAL JURISDICTION Writ petition Nos.
On the earlier occasion it was the Delhi State that sought to tax certain transactions under hire purchase agreements In the present case it is the Gujarat State that has sought to tax certain transactions under certain hire purchase agreements.
The question is when does sale liable to sales tax take place under a hire purchase agreement.
129, 131 of 1969.
Petition Under Article 32 of the Constitution of India .
The, petitioner is a limited companypany with its registered office in New Delhi.
