TaxTMI 
TaxTMI 
2024 (4) TMI 229
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....at all the other locations and during such visits, the statement of Shri Syed Asif Raja, Accountant of the appellant (Haryana Branch) was recorded; various documents including agreements for providing workwear to clients on rental basis were recovered. Two such agreements namely, with M/s. Mother Dairy Fruits and Vegetables Private Limited and M/s. Ecocat (India) Private Limited were also provided by the appellant. Further, the statement of Shri Manas Kumar, Business Unit Manager of the appellant, Haryana Branch, was recorded. 2.2 Upon scrutiny of the documents submitted by the appellant and the depositions made, the Revenue came to the conclusion that the service provided by the appellant is covered under the category of "supply of tangible goods service" classifiable under Section 65(105)(zzzzj) of the Finance Act, 1994 prior to 01.07.2012 and thereafter, under Section 65B(44) read with Section 69(f) of the Act. 3. Therefore, it is alleged that the appellant is actually involved in the supply of tangible goods without transferring the right of effective control, which amounts to providing a taxable service to their clients i.e., prior to 01.07.2012 under the definition of '....
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....or the lease the work-wear from the appellant and the appellant owns the lease product, will have exclusive right to wash the work-wear and also the Noticee shall have exclusive right to serve the work-wear. 21. The relevant paragraph of other agreement entered between the appellant M/s Eco Cat (India) Private Limited also reads as under; Object of agreement : Ecocat (India) Pvt. Ltd. shall lease from Lindstrom Services India Pvt. Ltd. the work-wear and Lindstrom engaged in delivering, washing and servicing the work-wear and taking care of the required replacement of the work-wear in accordance with their purpose of use. Lindstrom owns the leased products and shall have the exclusive right to wash and service them. ............ ............. ➢ Servicing Packing and transportation of the work-wears: Lindstrom shall place the packing and transport equipment needed for the deliveries at the disposal of the customer and the customer shall use the equipment only for such as purpose. Work-wear to a named collection point in accordance with the schedule agreed; Lindstrom shall collect the work-wears for servici....
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....s such legal right, it has to be the exclusion to the transferor this is the necessary concomitant of the plain language of the statute - viz. a "transfer of the right to use" and not merely a licence to use the goods; e. Having transferred the right to use the goods during the period for which it is to be transferred, the owner cannot again transfer the same rights to others. 92. In my opinion, none of these attributes are present in the relationship between a telecom service provider and a consumer of such services. On the contrary, the transaction is a transaction of rendition of service. 24. It is the contention of the Ld. Advocate that simply retaining the right to wash and maintain work-wear for the clients would not make it as if the effective control on these goods has been retained by the appellant. We are in agreement with the contention made by Ld. Advocate as the same as got approval from Hon'ble Supreme Court in BSNL case (supra). We also find that the similar issue come up for consideration before this Hon'ble Tribunal in case of Gimmco Limited vs. Commissioner of Central Excise and Service Tax, Nagpur [2017 (48) STR 476 (Tri.- Mum). The iss....
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....down by the Apex Court in case of BSNL, (supra) regarding transfer of effective control in terms of the provisions of Section 366 (29A)(d) of the Indian Constitution. Further, we also find that Apex court in case of Rashtya Ispat Nigam Limited has explained the similar issue as well; "5.4 The Apex Court in case of Rasthya Ispat Nigam Limited has explained the issue in lucid language. "The essence of transfer is passage of control over the economic benefits of property which results in terminating rights and other relations in one entity and creating them in another. While construing the word "transfer" due regard must be had to the thing to be transferred. A transfer of the right to use the goods necessarily involves delivery of possession by the transferor to the transferee. Delivery of possession of a thing must be distinguished from its custody. It is not uncommon to find the transferee of goods in possession while transferor is having custody. When a taxi cab is hired under "rent-a-car" scheme, and a cab is provided, usually driver accompanies the cab; there the driver will have the custody of the car though the hirer will have the possession and effective con....