Dama Seshadri Naidu, J.

1. The question concerns the “sale” of used cars. The Motor Vehicles Act, 1988, does not directly deal with the sale of a motor vehicle, a movable property; but the Sale of Goods Act, 1930, does. The Motor Vehicles Act, though, deals with the procedure post-sale. Here, a motor vehicle dealer is dealing in used cars. Is its transaction a sale in the conventional sense attracting the sales tax, or a service—as an intermediary, agent, or broker—to the true owner attracting service tax? The question is simple, but the answer is not.

C.E. Appeal No.14 of 2014:

2. The respondent-Sai Service Station Ltd., (“Sai”) is an authorised dealer for the cars made by M/s. Maruti Udyog Limited. Besides selling the new cars, Sai services and repairs the motor vehicles it sells. To this extent its business is conventional. But it also sells or deals in used or pre-owned cars through its “True Value Division”—the very expression “sale” being contested. It holds Service Tax Registration Certificate under the categories of the authorised service centre, Input-service distributor, and Business Auxiliary Services provider.

3. Taking a view that the activity undertaken by Sai’s