Service Tax Demand Set Aside as Equipment Hiring Constituted Deemed Sale Attracting VAT: CESTAT Kolkata

Advertisement TIL Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata) The CESTAT Kolkata allowed the appeal against an order confirming a service tax demand of ₹2,10,17,326 along with an equal penalty under Section 78 of the Finance Act, 1994. The dispute concerned whether the appellant’s equipment rental transactions were taxable as “supply of tangible goods service” under Section 65(105)(zzzzj) of the Finance Act, 1994 or constituted deemed sales liable to VAT/CST. The appellant was engaged in manufacturing, trading, and renting earthmoving and other equipme...