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2014 (10) TMI 566 - AT - Service TaxWaiver of pre deposit - Renting of equipments - right to use - appellants leased out the vacuum insulated storage tanks to the customers - Assessee paid VAT on the lease/rent received by them - Held that:- Possession has been transferred and one of the requirements of the definition of supply of tangible goods service is that possession and effective control should not have been transferred. If the possession is not transferred, the liability for any damage would be on the supplier. Another point according to the learned AR supports the case of the Revenue is the fact that appellant can have free access at all times to the equipment in buyer's premises. If the effective control and possession are with the appellants, then there is no need for this clause at all. If effective control is with the appellant then there is no need to have a clause in the agreement empowering them to have access to the premises to take care of the equipment. The discussion above would show that appellant has made out a case prima facie on merit. Accordingly, there shall be waiver of pre-deposit of the adjudged dues and stay against recovery for a period of 180 days - stay granted.
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