S. ANANDA REDDY, J. ( 1 ) IN this batch of Special Appeals and trcs the common question that arises for consideration is what is the taxable event in the course of deemed sale as referred to in sec. 5-E of the A. P. General Sales Tax Act (hereinafter referred to as the Act ). ( 2 ) IN all these Special Appeals, the turnover represents the lease rent receipts in respect of the goods purchased from outside the State of Andhra Pradesh and leased out in the State of Andhra Pradesh under the lease agreements executed prior to 01-07-1985. The Assessing Officer subjected the said receipts to tax observing that the goods leased out are not subjected to tax under the APGST Act. Therefore, the lease receipts after 01-07-1985 are exigible to tax under Sec. 5-E of the APGST Act. Accordingly, such lease rentals are subjected to tax. On appeal, the Appellate deputy Commissioner allowed the appeals accepting the claim of the assessee. However, the Commissioner of Taxes revised the said appellate orders. Hence, the special appeals by the assessee. ( 3 ) IN the case of Tax Revision Cases, the machinery was imported and leased to the lessee s company in December 1983. According to the assessee, the M/s. Wimco limited, Bombay leased out the imported machinery to M/s. Clean Foods corporation, Bangalore and the leased rent was also being paid by the said Corporation to M/s. Wimco Limited, Bombay directly. Therefore, it has not been registered in the books of M/s. Wimco Limited, madanapalle, which is a branch of m/s. Wimco Limited, Hyderabad. However, the Assessing Officer levied the tax on the lease rentals observing that though the lease agreements are between the registered offices, the transactions of leasing concluded in Andhra Pradesh, which attracts the tax liability under sec. 5-E of the APGST Act from 1-7-1985. On appeal, the Appellate Deputy Commissioner confirmed the view of the Assessing Officer. According to him, the transfer of the right to use took place in the State of Andhra pradesh and every month is a separate unit, hence the lease rentals are exigible to tax under APGST Act. On further appeal, the sales Tax Appellate Tribunal allowed the appeals holding the view that the transaction is an inter-State deemed sale. According to him, the transfer of the right to use took place in the State of Andhra pradesh and every month is a separate unit, hence the lease rentals are exigible to tax under APGST Act. On further appeal, the sales Tax Appellate Tribunal allowed the appeals holding the view that the transaction is an inter-State deemed sale. Since Sec. 5-E was not on the statute as on the date of the deemed transfer, the question of taxing under Section 5-E does not arise. The Tribunal also referred to and relied upon the judgments of this court. Hence, the tax revision cases at the instance of the Department. ( 4 ) THE learned Counsel G. N. Setti, appearing for the assessees in the special appeals contended that the Commissioner of Commercial Taxes was in error in reversing the well considered orders of the appellate Deputy Commissioner holding that the taxable event took place continuously from the date of contract till the end of the contract of lease. It is contended that as per Sec. 5-E, the taxable event is the transfer of right to use any. goods and not the use of the goods. According to him once the right to use the goods is transferred, the transaction is complete and the lessee or hirer is liable to pay the lease amount irrespective of the factum of user of the goods. The factum of using of the goods leased out is not relevant as far as the payment of the lease amount is concerned. The learned Counsel also contended that as the goods in question were purchased in the course of inter-State trade, the deemed sale contemplated under sec. 5-E of the APGST Act would not attract so as to levy tax. The learned Counsel also referred to the provisions of Section 3 of the central Sales Tax Act (for short cst Act ) and contended that Sec. 5-E of the APGST act has no application. Therefore, it is contended that the Commissioner of commercial Taxes is clearly wrong in holding otherwise and hence the impugned orders are liable to be set aside. The learned Counsel referred, to and relied upon the following decisions State of a. P. vs. Industrial Finance Corpn. of India (P) ltd. and 20th Century Finance Corpn. Ltd. vs. State of Maharashtra. Therefore, it is contended that the Commissioner of commercial Taxes is clearly wrong in holding otherwise and hence the impugned orders are liable to be set aside. The learned Counsel referred, to and relied upon the following decisions State of a. P. vs. Industrial Finance Corpn. of India (P) ltd. and 20th Century Finance Corpn. Ltd. vs. State of Maharashtra. ( 5 ) THE learned Counsel Sri P. S. Reddy, appearing for the respondents in the tax revision cases contended that the orders passed by the Tribunal are well founded and in fact, the Tribunal followed the decisions of this Court. Therefore, there is no merit in the tax revision cases filed by the Department. The learned Counsel also referred to various provisions of the APGST act relevant for the issue in question and contended that the taxable event is the transfer of the right to use the goods and not the actual using of the goods. It is also stated that clause (b) of Sec. 5-E was struck down by the Apex Court. Therefore, the situs of the goods and its user is not relevant for the purpose of Sec. 5-E of the apgst Act. The learned Counsel also referred to the following judgments in support of his contention: govind Saran Gangs Saran vs. Commr. of sales Tax State Bank of India vs. State of andhra Pradesh Rashtriya Ispat Nigam Ltd. vs. Commercial Tax Officer I. T. C. Classic Fin. and Services vs. Commissioner of Commercial taxes and 20th Century Finance Corpn. Ltd. vs. State of Maharashtra (supra ). ( 6 ) THE learned Government Pleader, on the other hand, supported the order of the commissioner of Commercial Taxes. According to the learned Counsel, the taxable event is the actual user and the situs for the levy of tax is the place where the goods are located. According to him, the taxable event is a continuous one and not one time event. Therefore, the commissioner of Commercial Taxes is justified in revising the orders of the appellate Deputy Commissioner. The learned Counsel also contended that the tribunal was not justified in accepting the claim of the dealer as to the tax liability. According to him, the taxable event is a continuous one and not one time event. Therefore, the commissioner of Commercial Taxes is justified in revising the orders of the appellate Deputy Commissioner. The learned Counsel also contended that the tribunal was not justified in accepting the claim of the dealer as to the tax liability. ( 7 ) FROM the facts stated earlier, it is clear that the transactions in question either took place in the course of inter-State trade or commerce or in the course of import of goods into the territory of India before the constitution Amendment Act, 1982. Before the insertion of clause (29-A) in Art. 366 of the Constitution of India by the constitution Forty-sixth (Amendment) Act, 1982; the apex Court ruled that the tax could be imposed only upon the transfer of property (ownership in goods) from one person to another. Under sub-clause (d) of clause (29-A) of Art. 366, a transfer of the right to use goods for any purpose for cash, deferred payment of other valuable consideration, would be deemed to be a sale of goods. Accordingly Sec. 5-E was inserted in the APGST Act by the Amendment Act 18 of 1985 with effect from 1-7-1985. By virtue of the said provision, the transfer for the use of the goods is a deemed sale, hence such deemed sales are exigible to tax. However, the insertion of Sec. 5-E has contributed lot of litigation because of the unreasonable and impracticable interpretations sought to be imposed on such deemed sales by the department. ( 8 ) IT would be proper to refer to the relevant provisions under the APGST Act: section 2 (1) (n) sale with all its grammatical variations and cognate expressions means every transfer of the property in goods (whether as such goods or in any other form in pursuance of a contract or otherwise) by one person to another in the course of trade or business, for cash, or for deferred payment, or for any other valuable consideration or in the supply or distribution of goods by a society (including a Co-operative society), club, firm or association to its members, but "does not include a mortgage, hypothecation or pledge of, or a charge on goods. Explanation I: (A delivery of goods on the hire-purchase or any system of payment by installments) shall, notwithstanding the fact that the seller retains the title in the goods, as security for payment of price, be deemed to be a sale. xxx explanation IV: A transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be deemed to be a sale. Section 2 (1) (q) tax means a tax on the sale or purchase of goods payable under this Act and includes, (I) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (II) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (III) a tax on the delivery of goods on hire purchase or any system of payment by installments; (IV) a tax on the transfer of the right to use any goods for any purpose (Whether or not for a specified period) for cash/deferred payment or other valuable consideration; (V) a tax on the supply of goods by any un-incorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; or (VI) a tax on the supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration; sec. 2 (1) (s): turnover means (I) the total amount set out in the bill of sale excluding the amount collected towards the tax or the tax due under the Act, whichever is less; (II) the total amount of consideration for the sale or purchase of goods excluding tax due under the Act as may be determined by the assessing authority, if the bill of sale does not set out correctly the amount for which the goods are sold; or (III) if there is no bill of sale, the total amount charged as the consideration for the sale or purchase of goods by a dealer either directly or through another, or his own account or on account of others, whether such consideration be cash, deferred payment of any other thing of value and shall include, (a ). . . . :. . . . . (b ). . . . . . . . . (c ). . . . . . . . . . . . . (D) the aggregate of amounts charged under Section 5-C or realizable under Section 5-E. Section 5-E: Tax on the amount realised in respect of any right to use goods: Notwithstanding anything contained in this Act: (a) Every dealer who transfers the right to use any goods for any purpose, whatsoever, whether or not for a specified period, to any lessee or licencee for cash, deferred payment or other valuable consideration, in the course of his business shall, on the total amount realised or realizable by him by way of payment in cash or otherwise on such transfer or transfers of the right to use such goods from the lessee or licencee, pay a tax at the rate of eight paise on every rupee of the aggregate of such amount realised or realizable by him during the year; (b) The transfer of right to use any such goods entered into by any dealer, shall be deemed to have taken place in this State whenever the goods are used within the State, irrespective of the place where the agreement whether written or oral for such transfer of right is made. Provided that no such tax shall be levied if the total turnover of the dealer including such aggregate is less than Rupees Two Lakhs. Provided that no such tax shall be levied if the total turnover of the dealer including such aggregate is less than Rupees Two Lakhs. ( 9 ) FROM the abqve provisions it is clear that sale means transfer of property in the goods by one person to another for cash or for deferred payment, or for any other valuable consideration in the course of trade or business. The Explanation-TV was inserted by Act 18 of 1985 so as to include within the term sale, a transfer of the right to use the goods for any purpose for cash or deferred payment. For the tax in this context means tax on the transfer of the right to use the goods for any purpose. Section 5-E clearly refers to the taxable event as the transfer of the right to use the goods but not the use of the goods. This was made clear further by the insertion of sub-section (b) to Sec. 5-E, which was inserted in view of the judgment of this court in I. T. C. Classic Fin. and Services (supra ). By the said clause (b) the situs of the transaction was shifted to within the State. Whenever the goods are used within the State irrespective of place where the agreement - whether written or oral for such transfer of the right is made. But none of the above provisions refers to the using of the goods as a taxable event. In the absence of any such provision either expressed or implied, it is not open to the Commissioner of Commercial Taxes to treat the user of the goods as a taxable event. ( 10 ) THE apex Court in the case of 20th century Finance Corpn. Ltd. (supra) considered the issue regarding the taxability under Sec. 5-E of the APGST Act, along with other similar provisions contained in other State Acts. The apex court struck down clause (b) of Sec. 5-E as ultra virus of the provisions of the constitution of India, while at the same time holding that the State Legislature is not competent to levy sales tax on the transfer of the rights to use the goods, if such deemed sale takes place outside the State or is a sale in the course of inter-State trade or commerce or a sale in the course of import or export. In view of the above binding decision of the apex Court, it is not open to the State to contend that it can levy tax even in the case of a sale or a deemed sale that has taken place outside the State and also in the case of sale in the course of import or export. In the present matters as the sales were either in the course of inter-State in the case of Mercantile Credit Corporation or in the course of import in the case of m/s. Wimco Limited, the transactions are out side the purview of Sec. 5-E, apart from the fact that the transactions took place prior to 1-7-1985 when Sec. 5-E wajs not in the APG st Act. ( 11 ) IN fact, this Court in the case of I. T. C. Classic Fin. and Services (supra) and also in the case of State of A. P. vs. Industrial Finance corporation of India (P) Ltd. held that in the case of sale effected outside the State and in the course of inter-State trade or commerce, the sale would not attract Sec. 5-E and hence is not exigible to tax under that provision. ( 12 ) IN view of the above legal position, we do not find any merit in the tax revision cases filed by the Department and hence the same are dismissed. In the special appeals, the view of the Commissioner of commercial Taxes is clearly illegal and unsustainable and accordingly the orders of the Commissioner of Commercial Taxes are set aide and the orders of the Appellate deputy Commissioner are restored. The special Appeals are accordingly allowed.