Earth moving equipment rental classified as a deemed sale, not a service, under Article 366(29A)(d) & Section 65B(44).

The appellant had provided earth moving equipment on monthly rent basis, transferring the right of possession and use to the lessee. This transaction constituted a deemed sale under Article 366(29A)(d) of the Constitution of India, as evidenced by the appellant paying State VAT. As per Section 65B(44) of the post-2012 negative list regime, activities constituting deemed sale are excluded from the definition of 'service'. Consequently, the renting of earth moving equipment did not qualify as a taxable service. The Tribunal held that the transaction was a deemed sale, not a service, and set aside the impugned order, allowing the appeal. .....

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