IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH : KOLKATA REGIONAL BENCH – COURT NO. 1 Service Tax Appeal No. 76877 of 2016 (Arising out of Order-in-Original No.47/COMMR/ST-II/KOL/2016-17 dated

28.07.2016 passed by Commissioner of Service Tax, Kolkata)

M/s. Gainwell Commosales : Appellant (Formerly known as Tractors India Pvt. Ltd.)

Godrej Waterside, Unit No. 705, 7^th Floor, Tower II, Block DP, Sector-V, Salt Lake City, Kolkata-700091.

VERSUS Commissioner of Service Tax, Kolkata : Respondent

180, Shantipally, Rajdanga Main Road, Kolkata-700107, West Bengal.

With Service Tax Appeal No. 76128 of 2017 (Arising out of Order-in-Original No.176-177/PR.COMMR/ST-I/KOL/2016-17 dated

31.03.2017 passed by Commissioner of Service Tax, Kolkata)

M/s. Gainwell Commosales :

(Formerly known as Tractors India Pvt. Ltd.) Appellant Godrej Waterside, Unit No. 705, 7^th Floor, Tower II, Block DP, Sector-V, Salt Lake City, Kolkata-700091.

VERSUS Commissioner of Service Tax, Kolkata :

180, Shantipally, Rajdanga Main Road, Kolkata-700107, West Bengal. Respondent With Service Tax Appeal No. 75411 of 2019 (Arising out of Order-in-Appeal No.573/S.Tax-II/Kol/2018 dated 26.10.2018 passed by Commissioner of CGST & CX, Kolkata)

M/s. Gainwell Commosales : Appellant (Formerly known as TIL Ltd.)

1, Taratala Road, Garden Reach, Kolkata-700 024.

VERSUS Commissioner of CGST & CX, Kolkata : Respondent

180, Shantipally, Rajdanga Main Road, Kolkata-700107, West Bengal.

APPEARANCE:

Shri B.L.Narasimhan, Rahul Tangri, Vasudev A, Advocates for the Appellant Shri D.Sue, Authorized Representative for the Respondent CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 77225-77227/ 2025 DATE OF HEARING :22.07.2025 DATE OF DECISION:22.07.2025 Order : [Per Shri Ashok Jindal]

All the appeals are having common issue therefore, all the appeals are disposed of by a common order.

2. The facts of the case are as under:

1. M/s. Gainwell Commosales Private Limited is primarily engaged in the trading of various equipments such as cranes, diesel generator sets, earthmoving equipment, and parts thereof.

2. The Appellant was registered under the Service Tax law, various State Value Added Tax Acts, and also the Central Sales Tax Act, for trading in the equipment and parts thereof.

3. In addition to the manufacturing and trading of equipment, the Appellant also enters into agreements with various customers for renting out such equipment for specific period on rental basis. As per the agreements, entered into with the customers, the Appellant shall deploy the equipments at the site of the customers, for specified period, during which the responsibility of the equipment entirely and exclusively rests with the customer. In short, the customer takes the possession and control of the equipment, whereas the ownership would remain with the Appellant.

4. Few of the important terms of the Agreements entered into by the Appellant with various customers are summarized below –

(i) An operator for operating the equipment may either be deputed by the customer itself or by the Appellant, at the request of the customer. However, in both the scenarios, the responsibility for any claim arising in connection with the operation of the equipments vests with the customer.

(ii) The equipment delivered on rent by the Appellant, shall be at the sole risk of the Customer.

(iii) The equipment shall be under the possession, control and custody of the Customer during the tenure of the agreement (iv) The equipment will be returned to the Appellant on expiry of the contract period.

(v) The customer shall indemnify the Appellant against any losses, damages, or destruction to the equipment or any component thereof.

(vi) The Appellant upon delivery of the equipment at the site of the customer, shall not use the equipment for any other purpose or withdraw the same.

5. Since, there was a transfer of right to use the goods, i.e., transfer of effective control and right