TaxTMI 
TaxTMI 
2024 (4) TMI 229
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....rom Services India Private Limited, is a subsidiary of M/s. Lindstrom OY, Finland and is engaged in leasing workwear to their clients on the conditions mentioned in the agreement with their clients. The appellant-company is having 11 locations in India. 2.1 During the financial year 2013-14, Service Tax Audit was conducted at their Chennai Branch and thereafter, audits were conducted all over India 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....
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.... of 2019 dated 02.08.2019 in Service Tax Appeal No. 99 of 2016-[DB] [CESTAT - Chandigarh] and therefore, it is submitted that the issue is no more res integra; in view of that, she submitted that the impugned order is to be set aside. 5.1 It is further submitted that for the various other units also, investigations were conducted and Show Cause Notices had been issued in all those cases, but the proceedings against the appellant have been dropped. In view of this also, it is prayed that the impugned order be set aside. 6. Heard the Ld. Counsel for the appellant. 7. We find that an identical issue has already been examined in the case of the Haryana unit of the appellant by the Tribunal and vide Final Order dated 02. 08. 2019 ( supra ) it....
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....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 servicing once a weak. The work-wears shall be inspected and repaired in connection with their servicing; In case of any non- conformance with the agreed quality aft....
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.... Ld. Advocate as relied upon the Hon'ble Supreme Court's decision in case of Bharat Sanchar Nigam vs. Union of India, wherein it is held under; 91. To constitute a transaction for the transfer of the right to use the goods the transaction must have the following attributes : a. There must be goods available for delivery ; b. There must be a consensus ad idem as to the identity of the goods ; c. The transferee should have a legal right to use the goods-consequently all legal consequences of such use including any permissions or licenses required therefor should be available to the transferee ; d. For the period during which the transferee has such legal right, it has to be the exclusion to the transferor this is the necessary conco....
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....eld that there is no service involved in this case relying on yet another decision of Hon'ble High Court of Andhra Pradesh in case of M/s G S Lamba. The paragraph 4 which is relevant is reproduced as below; "4. The Petitioners' counsel contends that five eventualities to infer the transfer of the right to use goods are not completely present in the transaction between the Petitioners and Grasim. He would urge that the Tribunal was wrong in relying on Clauses (A), (B) and (D) of the contract in concluding that the Petitioners had transferred the right to use Transit Mixers to Grasim. According to him, these clauses would not lead to any such conclusion and that there was no intention to create exclusive right to use the vehicles by Gra....
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.... 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....