TaxTMI 
TaxTMI 
2024 (12) TMI 601
X X X X Extracts X X X X
X X X X Extracts X X X X
....h brushes and intermediate production process therefor, such as moulding, handle making, bristling, making PVC trey, etc. For this purpose, the machines were installed by the respondent in the premises of the principal manufacturer themselves. The charges admittedly were collected based on quantum of work/ production under taken. The first appellate authority dropped the demand of service tax on 'supply of tangible goods service' on the ground that the arrangement constitutes deemed sale since machineries are under absolute control and possession of the principal manufacturers and all the terms of deemed sale are fulfilled in this case. 1.1 Being aggrieved by the said order of the Commissioner (Appeals) Revenue has filed the present appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urabh Dixit Learned Counsel appearing on behalf of the Respondent/Assessee submits that as per the facts of the case, the appellant have placed the plant and machineries in the factory of the so called service recipient. They have carried out the entire production process in their clients factory by using their own machine merely placing the machine in the factory of the service recipient does not amount to 'Supply of Tangible Goods for Use Service'. He submits that the charges was collected against the job work production carried out in the client's factory and no amount was collected towards the rent or lease of the plant & machinery. Therefore, in absence of any consideration towards the supply of machine no service tax under the 'supply....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dent has also filed a cross objection and challenge this finding. The submission of the respondent is that firstly, the activity dose not fall under the 'supply of tangible goods service' for the reason that the respondent has under taken the production process on job work basis in the factory of their client and they have received the consideration only for such job work and no any consideration was received for installing the machine in the factory of the client. We find that installation of the machinery in the clients factory is to carry out their own job at the factory premises of their client. The machine was used by themselves for carrying out the production activity. In such case, in our view there is no deemed sale whereas the enti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be considered as lease rent of the machine under the 'supply of tangible goods for use service'. Therefore, we are of the clear view that the transaction is of job work on their machine in the factory premises of their client and there is no transaction of 'supply of tangible goods for use service'. Therefore, the contention of the Revenue to demand the service tax under the said head has on basis. Accordingly, we are of the view that despite some findings of the Commissioner (Appeals) is not flowing form the show cause notice and the Order-In-Original but despite that considering cross objection filed by the respondent, we are of the view that the transaction is of 'job work' and not of 'supply of tangible goods for use service'. 5. Th....