https://www.taxtmi.com/caselaws?id=456292 The CESTAT Ahmedabad held that a business providing customized gas production units and cryogenic storage tanks on rental/lease basis constitutes deemed sale rather than supply of tangible goods service. The tribunal found that although machinery was supplied for customer use, the right of possession and effective control was transferred to the customer. Under constitutional provisions and established precedent, when transfer of right to use involves both possession and control, it qualifies as deemed sale subject to VAT/sales tax, not service tax under supply of tangible goods service category. The demand was set aside and appeal allowed. en-us Wed, 13 Sep 2023 00:00:00 +0530 Sat, 13 Jul 2024 21:06:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456292 The CESTAT Ahmedabad held that a business providing customized gas production units and cryogenic storage tanks on rental/lease basis constitutes deemed sale rather than supply of tangible goods service. The tribunal found that although machinery was supplied for customer use, the right of possession and effective control was transferred to the customer. Under constitutional provisions and established precedent, when transfer of right to use involves both possession and control, it qualifies as deemed sale subject to VAT/sales tax, not service tax under supply of tangible goods service category. The demand was set aside and appeal allowed. Case-Laws Service Tax Wed, 13 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456292