Case laws under sec 65(105)(zzzzj)

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Kolluru Krishna Murty

Partner

327 Points Posted on 17 December 2011

Sirs,

we have a case wherein our client has given medical equipments to various hospitals on operation and maitenance basis for some charges payable periodically and he is paying VAT/CST depending on the transaction destination.

Service Tax authorities have given notice demanding Service Tax under Sec 65(105)(zzzzj) of Finance Act,1994.

we contend that the possession and control is passed on to the hospital and hence ST is not applicable.

Can any one give me some case laws on this contention.

K.Krishna Murty

Replies (2)

CA Prabhat Gupta

Manager (Indirect Taxes)

644 Points Posted on 17 December 2011

The demand raised by Service Tax Department does not seems to be maintainable. Please refer to Piont No. F (3) of the file attached below, M.F.( D.R.) letter F.No. 334/1/2008 dt.29.02.2008 states that,"Supply of tangible goods for use and leviable to VAT / sales tax as deemed sale of goods, is not covered under the scope of the proposed service."

You may also check the link given below:

https://www.servicetax.gov.in/st-profiles/supply-tagiblegoods.pdf