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TMI Blog2020 (1) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... of repair, insurance etc. It is, therefore, not classifiable under SAC 9966, which is restricted to rental services of transport vehicles with operator. Classification of service - HELD THAT:- The service is classifiable under SAC 997311 as leasing or rental services concerning transport equipment without operator. It amounts to the transfer of the right to use the goods and taxable under Sl No. 17(iii) of the Rate Notification. Input tax credit - HELD THAT:- Section 17(5)(a) of the GST Act does not allow input tax credit on inward supply of motor vehicles of a specific category (those meant for transportation of persons having seating capacity not exceeding thirteen persons). The restriction, therefore, does not apply to the goods tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out operators to GTA would be exempt under serial no. 22 (b) of Notification no 12/2017 CT(Rate) dated 28/06/2017 (corresponding State Notification No. 1136 - FT dated 28/06/2017), as amended from time to time (hereinafter collectively called Exemption Notification ). It also wants to know, if not exempted what will be the appropriate classification and rate of tax in GST Act, 2017. Further, the applicant seeks clarification on whether the credit of input tax paid on purchasing of motor vehicles is admissible or not. 1.2 These questions are admissible under section 97(2)(a)(b) (d) of the GST Act. The concerned officer from revenue submits that questions raised in the application are not pending or decided in any proceedings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as defined under section 75 of the Motor Vehicles Act, 1988, the possession and control of the vehicle is transferred to the hirer. Therefore, unless such transfer of the right to use happens a contract of hiring a vehicle does not qualify as renting of a cab under rent-a-cab scheme. 2.4 Applying this analogy the Applicant argues that hiring in Sl No. 22 of the Exemption Notification does not include renting or leasing of vehicles when possession and control of the vehicle are passed on to the hirer. As the Applicant intends to transfer the possession and control to the lessee, SI No. 22 of the Exemption Notification will not, therefore, apply to its transactions. 2.5 Rental service of transport vehicles with operato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The service of transferring the right to use any goods for any purpose (whether or not for a specified period) is taxable under the said provision at the same rate as may apply to supply of the goods. Such a provision restricts the meaning of the term hire in Sl No. 22 of the Exemption Notification only to those transactions that do not involve transfer of the right to use the goods. Sachin Malhotra (supra) is relevant so far as it shows that the meaning attributable to an act of hiring is dependent upon the context in which the term is applied 4.3 The Applicant intends to lease out vehicles like trucks, tankers etc. that are designed to transport goods. The control and possession of the vehicle will be transferred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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