The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) Mumbai on Thursday held that renting of trucks will not result in liability of paying Service Tax under the category of “Supply of Tangible Goods Services”.
The Appellant M/s Satish Kumar & Co. is involved in the business as an advertising agency, business auxiliary services and insurance auxiliary service. The issue in regard to this appeal arose when the revenue department insisted the appellant to pay Service Tax under the category “Supply of Tangible Goods Service” on the rent received from specially designed trucks rented to another firm. The Department insisted that this renting to lessees is the service falls under the aforementioned category and the commissioner of appeals upheld the same.
Judicial Member Shri Ramesh Nair and Technical Member Shri Raju while disposing of the appeal in favour of the appellant, “we note that the appellant has given the trucks to the lessees on monthly rental charges. The appellant did not provide any facility such as the driver, repair and maintenance, fuel etc. Once the truck is rented out the entire possession and control is of the lessees and during the renting period there is no interference of the appellant.” Hence, the bench Adjudged that these services do not fall in the category of Supply of Tangible Goods Service.
