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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P.SAM KOSHY, SUDDALA CHALAPATHI RAO
NAC Infrastructure Equipment Ltd., Rep. By Its Authorized Signatory Mr. Rama Vivekananda Varanasi – Appellant
Versus
Assistant Commissioner (CT) – III – Respondent
ORDER :
P.Sam Koshy, J.
1. These are two writ petitions preferred by the petitioner assailing the order of assessment under the ANDHRA PRADESH VALUE ADDED TAX ACT , 2005 (for short ‘APVAT Act’ hereinafter) passed by the Assistant Commissioner (CT)-III, Enforcement Wing i.e., respondent No.1 for the period from April, 2008 to June, 2008. The question of law involved in the instant case is whether the transactions of the petitioner would constitute “a service” or will it amount to “deemed service” within the meaning of Section 4(8) of APVAT Act read with Section 2(28) Explanation IV of the two writ petitions W.P.No.27359 of 2008 is for the assessment year 2007-08 and W.P.No.27360 of 2008 is for the period April, 2008 to June, 2008.
2. The petitioner is a public limited company incorporated under the Indian Companies Act, 1956. It is a joint venture company between the National Academy of Construction (NAC) and Government of Andhra Pradesh along with two other infrastructure companies. The Company is primarily incorporated with the object of making available the necessary resources and the related machinery for ushering the growth in infrastructure field in the State of Andhra Pradesh
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.
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 ....
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, ....
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....
The central legal point established in the judgment is that the determination of a 'sale' under the Maharashtra Value Added Tax Act, 2002 depends on the effective control and possession of the goods,....
The transaction involving bulldozer hire charges constitutes a works contract, not a transfer of right to use goods, as the respondent retained complete control over the equipment.
Leasing hoardings is classified as a transfer of right to use goods, making it subject to VAT under Section 4(8) of the APVAT Act.
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