https://www.taxtmi.com/caselaws?id=353878 Workover rig contracts were held to be service contracts because the contractor retained possession, control, direction and supervision of the rigs, and the operator had no exclusive legal right to use them. Applying the settled test for transfer of the right to use goods, the absence of exclusive possession and separate consideration for hire meant VAT was not exigible. Even assuming a composite arrangement, the service and sale elements were not separately valued or severable, so the State could not split the transaction and levy VAT on the whole consideration. The VAT demand, appellate orders and Tribunal remand were therefore unsustainable. en-us Fri, 22 Dec 2017 00:00:00 +0530 Tue, 06 Nov 2018 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353878 Workover rig contracts were held to be service contracts because the contractor retained possession, control, direction and supervision of the rigs, and the operator had no exclusive legal right to use them. Applying the settled test for transfer of the right to use goods, the absence of exclusive possession and separate consideration for hire meant VAT was not exigible. Even assuming a composite arrangement, the service and sale elements were not separately valued or severable, so the State could not split the transaction and levy VAT on the whole consideration. The VAT demand, appellate orders and Tribunal remand were therefore unsustainable. Case-Laws VAT and Sales Tax Fri, 22 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353878