Helicopter Hiring by Andaman & Nicobar Administration Exempt from CST: Delhi HC

The Delhi High Court ruled that the supply of helicopters by Pawan Hans Ltd. to the Andaman & Nicobar Islands administration under a 2003 agreement is not subject to tax under the Central Sales Tax Act.

Overturning the VAT Appellate Tribunal’s decision, the Court clarified that the transaction did not qualify as a "transfer of right to use goods" under the CST Act.

The Court emphasized that for such a transfer to occur, there must be an actual transfer of effective control, which was not present in this case. The judgment thus exempted the helicopter hire from CST tax.