2026 (8) TMI 591

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....04.12.1999 for supply BCN' A type wagons to South Central Railway for a period of 20 years. For such supply, they had received lease rent under "Own Your Wagon" scheme. During scrutiny of the records of the appellants, the department had observed that supply of the aforesaid wagons on lease rental basis is appropriately classifiable under the taxable category of 'Supply of Tangible Goods Service', leviable to service tax w.e.f. 16.05.2008. Since the appellants did not pay service tax on such lease rental on wagons received from South Central Railway, the department had initiated proceedings against the appellants, which culminated into the adjudication order, wherein the original authority had confirmed proposals made therein. On appeal aga....

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....t there is no evidence available on record to show that the appellants had in fact, discharged their VAT liability on the lease rentals of wagons received from the lessee M/s South Central Railway. 4. Heard both sides and perused the case records. 5. The issue involved in the present appeal for consideration by the Tribunal is whether, leasing out the wagons to South Central Railway under the "Own Your Own Wagon Scheme" would constitute a service, liable for payment of service tax on the receipt of rental/lease charges; or, the same should be considered as a deemed sale, under Article 366(29A) of the Constitution of India. 6. We find that the Larger Bench of the Tribunal in the case of Rashtriya Chemicals Fertilizers Limited (supra....