Lease of railway wagons held transfer of goods due to possession and tax treatment; appeal dismissed

Whether the lease of wagons constituted a taxable service or a transfer of goods: the Tribunal found that the appellants had transferred right of possession and effective control of the wagons to the railway authority and had discharged applicable VAT/sales tax, thereby evidencing a transfer of goods rather than provision of a taxable service (Supply of Tangible Goods). The legal basis was the substantive control/possession test and contemporaneous tax treatment under VAT/sales tax. SC upheld the Tribunal's conclusion and dismissed the appeal.

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The Supreme Court of India in 2023 (2) TMI 1096 - SC Order upheld the decision of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) and dismissed the appeals, stating that the Tribunal did not commit any error warranting interference.

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