2016 (12) TMI 796

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or respondent ORDER Per: M.V. Ravindran 1. This appeal is directed against Order-in-Appeal No.PVR/29/NGP/2013 dated 22/01/2013 passed by Commissioner of Central Excise & Customs (Appeals), Nagpur. 2. Heard both sides and perused the records. 3. The issue that falls for consideration is whether appellant is liable to service tax on an amount received by them during the period October 2004 to M....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sue has been examined and decided by my predecessor against the appellant by two order-in-appeal s No.SVS/38-39/NGP-II/ST/07 dated 23/01/2007 and SVS/154/NGP-II-ST/2007 dated 16/03/2006 wherein it was held that " 9.1 The claim of the appellant is that their activity does not come within the meaning of financial services for the reason that they are not providing any finance for the equipment. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and therefore their activity is not liable to tax. 9.2 The above stand of the appellant is not sustainable for the reason that equipment leasing is covered under the term operating lease which is sub head of financial leasing. In terms of Rule AS 19 issued by Council of Institute of Chartered Accountants of India, lease has been divided into two types: Financial and operating leases. Separate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... purchase, ownership transfers incrementally to the user with every installment made to the lessor during the term of the contract. 9.3 There is no doubt about the fact that the storage, tank installed by the appellant are in the nature of equipment and the terms of agreement, under which a fixed amount is being charged for the utilization of the facility of the tank, give clear indication that ....