2024 (6) TMI 501

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....ervice Tax authorities under the category of 'maintenance or repair service' and also paying Service Tax under reverse charge mechanism for 'manpower supply service', 'rent-a-cab service', etc. Initially, the appellant was engaged in the business of information technology goods, for rental, purchase and sale. It includes a retail store for sale of computers and other IT peripherals as well as supply of equipment on hire basis to various customers along with the right to use such equipment. It also provides repair and maintenance service in the form of AMCs and service contracts. 3. An investigation was conducted and a Show Cause Notice was issued to the appellant for the period from 2011-12 to2014-15 on 07.10.2016 alleging that the activit....

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....very nature of the goods supplied on rent that the said goods cannot be used by the customer unless the effective control and possession is not parted by the appellant in the customer's favour, as the said goods viz. laptops, desktops, monitors, etc., have to be used as per the customer's own specifications and needs; the appellant can in no way control the use of such equipment at the customer's premises. Therefore, the appellant does not have effective possession and control. In these circumstances, the appellant submits that they are not liable to pay Service Tax as held by Tribunal in the case of Lindstrom Services P. Ltd. v. Principal Commissioner of G.S.T. & Central Excise [Final Order No. 40818 of 2020 dated 29.10.2020 in Service Tax....

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....c. The assessee owns the leased work wear and keeps the exclusive right of washing, maintenance, repairing, alteration etc. of work wear with itself and their customers are not free to avail these services from any third party. d. The assessee shall collect the work wear for Servicing, Packing and Transportation on weekly basis. Thereafter, they wash, inspect and repair and finish them industrially. e. In case of termination of the contract, customers / clients shall redeem from the assesse, the work wear that have been in the use. f. In all circumstances like cancellation of agreement, the work wear remains the property of LSIP." 7. The Chandigarh Bench of the Tribunal had occasion to analyse very same issue and terms and conditions....