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2013 (7) TMI 96 - AT - Service TaxSupply of Tangible goods for use - Services u/s Section 65(105)(zzzzj) - stay – the appellant provided the rigs for drilling operations/ drilling wells in the offshore waters – did not discharge any service tax liability on the services rendered - appellant contended that the activity undertaken is not "supply of tangible goods' but comes under the category of drilling of oil wells – Held that:- Prima facie after going through the agreement, it was held that the service undertaken by the appellant falls under the category of "supply of tangible goods for use"- the agreement is for charter hiring of drilling units - the compensation is fixed on per day basis - thus even when no drilling takes place, the service provider is compensated – thus the transaction involved is one of service as it was decided in Indian National Ship owners Association Vs. UOI (2009 (3) TMI 29 - BOMBAY HIGH COURT). Validity of show cause notice – The notice was served within a period of one year – thus the show-cause notice is within time and the allegation of time bar is not sustainable. Appellant directed to submit 50% of the amount - stay granted partly.
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