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2023 (11) TMI 475 - CESTAT HYDERABADClassification of service - Rent a Cab Service or Transfer of right to use of Tangible Goods? - hiring of vehicles/buses by appellants to Andhra Pradesh State Road Transport Corporation (APSRTC) - HELD THAT:- On going through the judgements placed by both the parties along with various circulars, Memo, Circular issued by Commercial Taxes of Andhra Pradesh and APSRTC in relation to hiring of Vehicles - going through the terms of agreement / tender which clearly demonstrate that during the course of agreement effective control over vehicle is with APSRTC, it is found that in the light of clarification issued by Central Government in D.O.F No 344/1/2008 – TRU dated 29-02- 2008, has clarified that “Supply of tangible goods for use and leviable to VAT / Sales Tax as deemed Sales of Goods, is not covered under the scope of the Service” and hence the present activity of Hiring of Vehicles to APSRTC cannot be covered under “Rent a Cab Service”, but is covered under “Transfer of Right to Use”, which is deemed sale and liable to Sales Tax. The activity in question provided by the Appellant, is in the nature of “Transfer of Right to Use” and not “Rent a Cab” - the impugned order set aside - appeal allowed.
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