No Service Tax on Hire Charges as effective control & possession passed on

Commissioner of Service Tax Vs Navnirman Construction Company (CESTAT Delhi)

CESTAT Delhi held that service tax is not leviable when goods are given on hire along with effective control and possession thereof. Accordingly, demand on hire charges dropped as equipments are given on hire with right of possession and effective control.

Facts- The respondent was registered for providing the construction services for constructing commercial/industrial buildings or civil structures, for providing works contract services, supply of tangible goods services etc. CERA

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