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

Equipment rented on monthly basis=deemed sale under Sec 366(29A)(d). Excluded from 'service' as per Sec 65B(44). Tribunal upheld transaction as sale, not service.

Case Laws     Service Tax

August 16, 2024

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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