https://www.taxtmi.com/caselaws?id=795656 Lease rentals for tinting machines constitute a deemed sale where the lessee receives possession, the legal right to operate the identified equipment during the lease term, and effective control, while the owner cannot simultaneously transfer that right to another person. Restrictions on location, servicing, inspection, specified use and return of the equipment do not negate transfer of the right to use goods. Applying the five-part test and the departmental clarification, such arrangements fall within Article 366(29A)(d) of the Constitution rather than declared service treatment for hiring or leasing without transfer of that right. The rentals are therefore not liable to service tax, and related demand, interest and penalties are unsustainable. en-us Tue, 21 Jul 2026 00:00:00 +0530 Sat, 25 Jul 2026 08:54:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795656 Lease rentals for tinting machines constitute a deemed sale where the lessee receives possession, the legal right to operate the identified equipment during the lease term, and effective control, while the owner cannot simultaneously transfer that right to another person. Restrictions on location, servicing, inspection, specified use and return of the equipment do not negate transfer of the right to use goods. Applying the five-part test and the departmental clarification, such arrangements fall within Article 366(29A)(d) of the Constitution rather than declared service treatment for hiring or leasing without transfer of that right. The rentals are therefore not liable to service tax, and related demand, interest and penalties are unsustainable. Case-Laws Service Tax Tue, 21 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795656