TaxTMI 
TaxTMI 
2026 (9) TMI 1919
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....eviable to service tax under the category "supply of tangible goods service". The MOU between the appellant and recipient M/s. Raj & Company reads as under:- "For 1486 and 1415 NM3 capacity truck at present rent is Rs. 2500/- per trip and for 1801 NM3 rent is Rs.4000/- per trip. Skid rent for all the truck is Rs. 4.00 per NM3 up to 6 trip and Rs. 4.50 per NM3 for 7 trips." 1.1 The department was of the view that the appellant has transferred possession and actual control of the trucks to the recipient and therefore, the income accrued to them is leviable to service tax under the taxable category of "supply of tangible goods service". The revenue also observed that the appellant has neither obtained registration with service tax ....
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....stalled with Hydrogen Cylinder skid in favour of lessee and physical possession of the truck with Hydrogen Cylinder Skid is to be handed over to appellant after termination of MOU. She upheld the order of the Adjudicating Authority. Hence, the present appeal before this Tribunal. 2. In their appeal, the appellant took the following grounds and prayed for setting aside the impugned order. • The appellant is renting their vehicles duly installed with Hydrogen Cylinder Skid under MOU to M/s Raj & Company and receiving rent for the said vehicles. • The said MOU clearly reveals that entire Vehicle, duly installed with Cylinder Skid, has been handed over to the customer and "during entire renting period, vehicle is be....
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....ring arguments, Learned Advocate mentioned that the department had earlier issued four show causes notices to the appellant involving same issue which were challenged before the Tribunal. These matters were decided by the Tribunal vide Order No. A/12258-12259/2023 dated 11.10.2023, Order No. A/10874/2024 dated 15.04.2024 and order A/11909/2024 dated 23.08.2024 by way of remand with certain observations, to the Adjudicating Authority. Subsequent to these remand orders, the Adjudicating Authority decided the matter vide order dated 25.09.2025 wherein, he dropped the demand of service raised against the noticee. Learned Advocate further mentions that the order of the Adjudicating Authority has not been challenged by the department and therefor....
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.... per trip basis for providing the vehicle to Raj & Company and therefore, the activity prima facie would be of transportation service. The relevant Para 4 and 4.1 is reproduced below:- "4. We have carefully considered the submission made by both sides and perused the records. We find that as per the fact which is not in dispute between the appellant and the revenue that the charges for providing the vehicle to Raj & Company is on per trip basis. This shows that the transaction is not of renting of vehicle as in case of renting the fixed amount is charged on monthly basis or lump sum, however, if the charge is on the basis of per trip that prima facie shows the activity is of transportation. 4.1 However, the aspect that whe....