Hiring of motor vehicles/ cranes doesn’t attract Sales Tax or VAT

K.P. Mozika Vs Oil and Natural Gas Corporation Ltd. & Ors. (Supreme Court of India) Supreme Court held that contract involving hiring of motor vehicles/ cranes, without transfer of right to use, is not covered by provisions of Sales Tax Act or the VAT Act. Facts- Broadly, the question involved herein is whether, by hiring these motor vehicles/cranes, there is a transfer of the right to use any goods. If there is a transfer of the right to use the goods, it will amount to a sale in terms of Clause 29A(d) of Article 366 of the Constitution of India. In short, if the transactions do not fall ...