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March 2023

Service Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang
Chartered Accountants
Reading Time 6 mins

TRIBUNAL

29. Lindstrom Services India Pvt Ltd vs.

CCE & ST Vadodara-1

2023-TIOL-97-CESTAT-AHM

Date of order: 23rd January, 2023

Whether services of leasing – workwear (uniform) liable for service tax when VAT is paid on the same.

FACTS

Appellant is in the business of leasing workwear (uniform) to the clients upon conditions mentioned in the agreement with the clients. The conditions inter alia included delivering, collecting for washing, and servicing individually customized with workwear of every worker’s size along with logo and label as specified. The appellant would own such uniforms and would have the exclusive right to wash and service them. Also, if the workwear was not usable on account of wear and tear, they were returnable to the appellant and the price was fixed for the customer to pay at a depreciated price as agreed upon. For replacement also, it was redeemed at an agreed price. VAT was charged on the rental charges charged by the appellant to their clients. In the scenario, the case of Revenue was that the contract involving the service of renting, usi

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