#service tax classification

CESTAT Chennai rules that hiring out trailers without transferring possession or control to the hirer constitutes a taxable 'Supply of Tangible Goods Service' under Section 65(105)(zzzzj), clarifying that mere operational control retained by the provider does not negate service classification. This impacts logistics and equipment rental businesses nationwide, requiring re-evaluation of service tax compliance for asset-hire models where title and control remain with the lessor.

CESTAT Chandigarh rules that distinct invoicing of transportation and cargo handling services prevents classification as a 'naturally bundled service' under the Finance Act, 1994. The ruling clarifies that service tax liability must be assessed based on actual invoicing practices, not assumed bundling, impacting multimodal logistics providers and tax authorities.