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Issues: Whether hiring of cranes under the work order amounted to a transfer of the right to use goods and hence a deemed sale exigible to VAT under section 2(24) of the Maharashtra Value Added Tax Act, 2002.
Analysis: The contract showed that ownership remained with the respondent, the cranes were deployed with operators and crew under the respondent's arrangement, the respondent bore maintenance, insurance, diesel-related responsibilities, security, and statutory compliance, and the hiring arrangement was tied to deployment under the respondent's continued custody. The Court held that the decisive test was whether effective control and possession had passed to the client. On the contractual terms, the cranes were merely hired out and deployed for use, while effective control continued with the respondent. The Court also found the reasoning in the Tribunal's reliance on analogous crane-hire precedent to be sound, and distinguished the authorities relied upon by the appellant on the facts.
Conclusion: The transaction did not constitute a transfer of the right to use cranes and was not a deemed sale under the Maharashtra Value Added Tax Act, 2002. The question of law was answered in the affirmative in favour of the respondent and against the appellant.
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