No VAT/Sales Tax on hiring of Vehicles or Cranes when Control remains with Contractor: Supreme Court clarifies it as ‘Service’ not ‘Sales of Goods’

The Supreme Court clarified that hiring vehicles and cranes for work where the contractor retains control is not subject to VAT or sales tax, as it is a service, not a sale of goods. In this case, a contractor had hired vehicles and cranes for a specific job, but the tax authorities sought to impose VAT or sales tax on the transaction. The Supreme Court ruled that the transaction was a service and not the sale of goods, as the contractor retained control of the equipment. This decision provides clarity on the taxation of services involving the use of equipment and prevents misclassification under VAT laws.