https://www.taxtmi.com/caselaws?id=796718 Leasing railway wagons under the Own Your Wagon Scheme is treated as a deemed sale rather than a taxable Supply of Tangible Goods Service where possession and effective control pass to the Railways. The governing test is whether the lessee receives both possession and effective control of the wagons. Lease rentals are therefore not subject to service tax under that service category if VAT or sales tax has been discharged on the rentals as a deemed sale. The original authority must verify payment of VAT or sales tax; once verified, the service-tax proceedings must be dropped. en-us Fri, 31 Jul 2026 00:00:00 +0530 Mon, 10 Aug 2026 08:37:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796718 Leasing railway wagons under the Own Your Wagon Scheme is treated as a deemed sale rather than a taxable Supply of Tangible Goods Service where possession and effective control pass to the Railways. The governing test is whether the lessee receives both possession and effective control of the wagons. Lease rentals are therefore not subject to service tax under that service category if VAT or sales tax has been discharged on the rentals as a deemed sale. The original authority must verify payment of VAT or sales tax; once verified, the service-tax proceedings must be dropped. Case-Laws Service Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796718