TaxTMI 
TaxTMI 
2019 (2) TMI 1034
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....inal arguments on appeal today itself. The request for early hearing is hereby accepted. 2. After hearing the arguments, appeal is disposed as follows:- The appellant herein is engaged in manufacture of cement and clinker. They are also availing Cenvat Credit on input services for making payment of Central Excise duty on the clearances of their final product. During the course of audit of appellants record for the period February, 2013 to December, 2013, the Department observed that the appellant have leased their wagons to Indian Railways on rental basis. But no Service Tax liability has been discharged on the amount so received by the appellant. Despite that the service rendered by the appellant falls under the category of supply of....
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.... of an agreement dated 22nd September, 1999 but, supply was affected in the year 1997 itself. The service of supply of tangible goods came into Service Tax net only on 16th May, 2008. Hence, the demand confirmed by the Adjudicating Authorities below is absolutely not sustainable. Order is prayed to be set aside. The appeal is prayed to be allowed. 5. Per-contra, ld. D.R. has justified the order under challenge. Emphasis is laid on the findings as mentioned in para 8 thereof, wherein the transaction in hand is denied to be a deemed sale for the fact that no VAT has been paid in the impugned transaction. Appeal is accordingly, prayed to be dismissed. 6. After hearing both the parties and perusing the entire record, we foremost, reproduc....
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....ve been handed over. Also that the transfer of right to use the goods, delivery or supply of any goods, which is deemed to be sale within the meaning of clause 29 A of Article 366 of the Constitution of India shall not amount to be a service. 7. Now coming to the facts of the present case, since appellant was using railways for most of the clearances of its final product i.e. cement and clinker, the appellant opted for the said scheme introduced by Railway in the year 1992 i.e. "Own Your Wagon Scheme". In accordance of the scheme, irrespective the ownership of wagons could vest in the producers, but wagons were to be placed at the disposal of Railways. Not only this, those were to be merged in general pool of Railways. Also responsibi....
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....in the case of Petronet LNG (supra) wherein Tribunal observed as follows:- "On a true and fair construction of the several provisions of the long term charter agreements, including in particular clause 15, the conclusion is inescapable that the taxable event occurs on the entering into the agreement followed by delivery of the tankers and not on day-to-day basis as contended by the Revenue. The stipulation as to payment of daily hire charges is only a commercial term relating to computation of the hire charges payable by the assessee to the owners. These clauses do not legitimize the inference that supply occurs on each day the tankers are used. The Supreme Court in 20th Century Finance Corporation and Anr. (supra) clarifies that wher....