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IN THE HIGH COURT OF JUDICATUREAT MADRAS
K.R.Shriram, C.J., Mohammed Shaffiq
Anandcine Service Pvt. Ltd. – Appellant
Versus
Commissioner of Service Tax-II, Office of the Commissioner of Service Tax-II – Respondent
| Table of Content |
|---|
| 1. nature of transactions and tax obligations (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 2. challenge to the jurisdiction of the adjudicating authority (Para 10 , 11) |
| 3. legal principles regarding transfer of rights to use goods (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 4. determination of service tax applicability (Para 20 , 21 , 22 , 23) |
| 5. final ruling and refund order (Para 24) |
JUDGMENT :
K.R.Shriram, C.J.
Appellant is a supplier of cine equipments, gensets, cranes, etc., to be used in film shooting. These equipments are operated by experts in their respective fields engaged by the hirers and the role of appellant is restricted to hiring out these equipments. According to appellant, the place and use of the equipments is in the production of cinematographic films using the hirer's technicians.
2. Appellant had obtained a service tax registration and was allotted Registration No.AAAFA4996KST001. Appellant had classified the services provided by it under supply of tangible goods services and paid service tax on the services.
3. The department, on verification of records of the assessee, found that no service tax had been paid and no service tax returns were filed for the
Hiring of equipment with transfer of use is deemed a sale, exempting the transaction from service tax under the Finance Act.
The main legal point established is that the transfer of the right to use goods constitutes a deemed sale under the MVAT Act and is subject to VAT, while being excluded from the definition of 'servic....
Transactions involving site analyser machines are deemed sales, not taxable as supply of tangible goods for use due to the transfer of possession and effective control to the clients, exempting them ....
The transactions of leasing infrastructure equipment constitute services, not deemed sales, as effective control remains with the provider rather than transferring rights to the user.
Effective control over services rendered is the key factor in determining tax classification under VAT, reaffirming that possession retention by the service provider precludes deemed service status.
Sale of goods – A necessary ingredient of sale of goods is transfer of property in goods subject matter of sale from seller to buyer – Only because a person is allowed to use certain goods of owner, ....
Point of Law : Crane services provided by respondent-assessee do not constitute sale as provided under Section 2(35)(iv) of the Act of 2003 and hence, order of learned Tax Board does not call for any....
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