https://www.taxtmi.com/caselaws?id=165336 Renting audio-visual equipment was treated as a transfer of the right to use goods, because the decisive test is whether possession and effective control pass to the customer; on the stated facts, no material showed that the supplier retained such control, so the turnover was taxable as a deemed sale. Interest was unsustainable because the tax had already been paid before the interest order, leaving no default to attract liability. Enhanced penalty could not be imposed under the VAT penalty provision without a recorded allegation and proof of fraud or wilful neglect, and a mere reproduction of the statutory language was insufficient. The assessment was therefore sustained only on the rental turnover, while interest and penalty were set aside. en-us Wed, 23 Feb 2011 00:00:00 +0530 Tue, 16 Sep 2014 10:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165336 Renting audio-visual equipment was treated as a transfer of the right to use goods, because the decisive test is whether possession and effective control pass to the customer; on the stated facts, no material showed that the supplier retained such control, so the turnover was taxable as a deemed sale. Interest was unsustainable because the tax had already been paid before the interest order, leaving no default to attract liability. Enhanced penalty could not be imposed under the VAT penalty provision without a recorded allegation and proof of fraud or wilful neglect, and a mere reproduction of the statutory language was insufficient. The assessment was therefore sustained only on the rental turnover, while interest and penalty were set aside. Case-Laws VAT and Sales Tax Wed, 23 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165336