https://www.taxtmi.com/caselaws?id=221507 Operating lease arrangements for aircraft were treated as raising a substantial prima facie defence where the aircraft remained to be maintained, operated and controlled by the appellant, indicating transfer of possession and effective control was not retained by the lessor for the taxable category of supply of tangible goods. The CBEC clarification on chartering of aircraft was noted to require a fact-specific examination of effective control, and to indicate that control is not transferred where the owner provides the crew in a wet lease. The stay stage also took account of the constitutional concept of transfer of the right to use goods as a deemed sale. On that basis, pre-deposit of service tax and penalties was dispensed with and the stay petition was allowed unconditionally; the Revenue's miscellaneous application was disposed of as infructuous. en-us Fri, 04 May 2012 00:00:00 +0530 Thu, 14 Mar 2013 05:39:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221507 Operating lease arrangements for aircraft were treated as raising a substantial prima facie defence where the aircraft remained to be maintained, operated and controlled by the appellant, indicating transfer of possession and effective control was not retained by the lessor for the taxable category of supply of tangible goods. The CBEC clarification on chartering of aircraft was noted to require a fact-specific examination of effective control, and to indicate that control is not transferred where the owner provides the crew in a wet lease. The stay stage also took account of the constitutional concept of transfer of the right to use goods as a deemed sale. On that basis, pre-deposit of service tax and penalties was dispensed with and the stay petition was allowed unconditionally; the Revenue's miscellaneous application was disposed of as infructuous. Case-Laws Service Tax Fri, 04 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221507