Payment of High rental would not mean transfer of property is involved

Last updated: 08 May 2023

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The Kerala High Court has ruled that fixed payments made under a Build, Own, Operate (BOO) contract do not automatically signify a transfer of property. In this case, an industrial gas supplier argued that their fixed charges, which included a return on investment, were not evidence of selling the plant itself. The court agreed, stating that the ownership of the plant remained with the supplier during the contract term, and recovering investment costs did not equate to a property transfer.

Court :
Kerela High Court

Brief :
The Hon'ble Kerela High Court in the case of Prodair Air products India Pvt. Ltd. v. State of Kerala [W.A. No. 374 of 2021 dated April 3, 2023] held that payment of fixed cost under a contract would not mean that the contract is of transfer of property.

Citation :
W.A. No. 374 of 2021 dated April 3, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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