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2011 (2) TMI 1311 - HC - CST, VAT & Sales Tax
Whether there was a transfer of the right to use goods, needed a thorough verification on the evidence available with the petitioner. The matter was remanded to the assessing authority to examine, on the basis of the evidence placed by the petitioner, whether there was a transfer of the right to use goods. No final finding of fact has been recorded by the appellate authority. The observations made by him, when examined in the light of his directing the assessing authority to cause a thorough verification in this regard, would negate the petitioner's contention that the appellate authority had finally concluded that there was no transfer of the right to use goods attracting section 4(8) of the Act.
As noted hereinabove in a composite contract, (unlike an indivisible contract), both service tax and VAT can be levied having regard to the respective parameters of "service" and "sale". The service tax assessments are not the subject-matter of challenge in these proceedings. It is also not clear whether the petitioner has paid service tax on the audio-visual equipment rentals. We see no reason, therefore, to direct refund of the service tax paid by them. Suffice to hold that the order now passed by us shall not preclude the petitioner, if they are so entitled, from claiming refund of service tax paid by them in appropriate legal proceedings. The challenge to the impugned assessment order dated April 8, 2010, however, fails