2018 (6) TMI 1156

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.... leased their various types of machines to Roots Casts (P) Ltd., Roots Polycraft and M/s.Roots Prevision Products Pvt. Ltd. by entering into lease deeds and received lease rents from lessees. The period of dispute involved in these appeals is March 2006 to March 2008, April 2008 to March 2009 and April 2009 and March 2010. Proceedings were initiated against the appellants proposing demand of service tax liability on this activity under 'Business Support Service' as per Section 65 (105) (zzzq) of the Finance Act, 1994. On adjudication, these proposals were upheld by the original authority, however on further appeal, the Commissioner (Appeals) while upholding the demand under Business Support Service for the period upto 15.05.2008, however fo....

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.... amending earlier entry on Mining Service and not by carving out of Mining service. Ld. Advocate submits that the lower appellate authorities have therefore not taken the stand as they have done in these cases, that supply of Tangible goods service is one which has been carried out of erstwhile BSS. ii) In any case, appellants have given up the machines only on lease deeds and had received least rents from the lessee concerned and had also paid VAT on the amounts so received. Ld. Advocate submits that this averment had been made even before the adjudicating authorities. In support of his contention, he takes us to OIO No.83/2014 dt. 19.12.2014 relating to Appeal ST/42022/2015, wherein at para-16 thereof it has been indicated that a....

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....e case that the these activities were outsourced to the appellant on these machineries. On the other hand, manufacturing activity was got done with the help of these machineries only by the lessee at their own control and fancy and not on any direction or control of the appellants. This being so, the ingredients required for bringing the activity within the fold of supply of Tangible Goods Service for the purpose of Section 65 (105) (zzzzj) ibid are not satisfied. Renting has satisfied the requirements of "deemed sale". This being so, in view of the activities will not fall either within the scope of Business Support Service for the earlier periods or for that matter, under the supply of Tangible Goods Service for subsequent periods. The ca....

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....t on the transfer of the right to use goods regardless of when or whether the goods are delivered for use subject to the condition that the goods should be in existence for use; (3) in the transaction for the transfer of the right to use goods, delivery of goods is not condition precedent, but the delivery may be one of the elements of the transaction; (4) the effective or general control does not mean always physical control and even if the manner, method, modalities and the time of the use of goods is decided by the lessee or the customer, it would be under the effective or general control over the goods; (5) the approvals, concessions, licences and permits in relation to goods would also be available to user of....