The appellant had provided earth moving equipment on monthly ...

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

August 16, 2024

Case Laws     Service Tax     AT

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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