Machinery Supplied under Lease Rent is Deemed Sale, not Liable to Service Tax under Supply of Tangible Goods for Use: CESTAT

The CESTAT ruled that machinery supplied on lease rent is considered a "deemed sale" and is not liable for service tax under the category of "supply of tangible goods for use." The tribunal reasoned that the transaction, being a lease, qualifies as a sale under relevant laws and hence falls outside the purview of service tax. This decision is significant for businesses that lease machinery, as it clarifies the tax treatment for such transactions.