2018 (5) TMI 1420

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....iable to be charged to Service Tax under the category of supply of "Tangible Goods Service" falling under Section 65 (105) of the Finance Act, 1994. The department, after conclusion of investigation, raised the demand for the period 2008-09 to 2012-13 along with interest as well as penalty under various Sections of the Finance Act, 1994. Aggrieved by the impugned order, confirming the demand of Service Tax amounting to Rs. 1,87,88,664/-, the present appeal has been filed. 2. With the above background, we heard Shri Vineet Kumar Singh, ld Advocate for the appellant as well as Shri Amreesh Jain, DR on behalf of the Revenue. 3. The arguments advanced on behalf of the appellant are summarized below: During the period under dispute, the appel....

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.... He reiterated the findings of the adjudicating authority. 7. We have heard both sides and perused the record. 8. The Supply of Tangible Goods Service was introduced w.e.f. 16.05.2008 and is covered under Section 675 (105) (zzzzj). The definition is reproduced below for ready reference: "Taxable service" means any service provided or to be provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliance." 9. At the time of introduction of the above services, the CBEC vide their circular dated 29.02.2008, has explained the scope of levy of t he above service a....

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.... activities as per necessity. It is further evident from the record of the case that the appellant has also paid VAT/ST on the consideration received, considering the same as "deemed sale of goods." The above circular of the payment has clarified that the levy of Service Tax on the transaction as well as levy of VAT, considering the transaction as deemed sale, will be mutually exclusive. 10. In the case of Chhattisgarh Earthmovers (supra), the Tribunal has observed in similar facts as under: "4. We have heard both the sides and perused the appeal records. On plain reading of the agreement, it is clear that the respondent is supplying machinery (JCB) for the client in which absolute possession over the machinery is with the client. Supply....