Supply of tangible goods service not attracted to storage tank facility charges where ownership stayed with the assessee and customers controlled the tanks.

Fixed facility charges for supplying storage tanks at customers' premises were not taxable as supply of tangible goods service because ownership of the tanks remained with the assessee and customers had possession and effective control during the contract period. The charges were also treated by the Board as part of the assessable value for central excise duty on gases, and departmental authorities were bound by that clarification. The same issue had already been decided in the assessee's favour on identical reasoning. The demand for service tax on the fixed facility charges therefore could not be sustained.

---

---

Issues: Whether the fixed facility charges recovered for supplying storage tanks at the customer's premises were taxable as supply of tangible goods service.

Analysis: The facility arrangement did not amount to supply of tangible goods service because the tanks remained owned by the assessee and the customers had possession and effective control during the contract period. The charges were treated by the Board itself as part of the assessable value for central excise duty on the gases, and the departmental authorities were bound by that clarification. In the assessee's own case, the same issue had already been decided in its favour on the same reasoning.

Conclusion: The fixed facility charges were not liable to service tax under supply of tangible goods service, and the demand could not be sustained.

---