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2018 (6) TMI 1156 - AT - Service TaxService or sale - appellant had leased their various types of machines to Roots Casts (P) Ltd., Roots Polycraft and M/s.Roots Prevision Products Pvt. Ltd. by entering into lease deeds and received lease rents from lessees - whether the activity would amount to Supply of Tangible Goods Service or deemed Sale? - Held that:- It is abundantly clear that the nature of renting of the machineries caused through lease deeds was in the nature of deemed sale. It is also seen that it is the lessees and not the appellants had effective possession and control of such machineries leased. It is also not the case that the these activities were outsourced to the appellant on these machineries. On the other hand, manufacturing activity was got done with the help of these machineries only by the lessee at their own control and fancy and not on any direction or control of the appellants. This being so, the ingredients required for bringing the activity within the fold of supply of Tangible Goods Service for the purpose of Section 65 (105) (zzzzj) ibid are not satisfied. Renting has satisfied the requirements of “deemed sale”. This being so, in view of the activities will not fall either within the scope of Business Support Service for the earlier periods or for that matter, under the supply of Tangible Goods Service for subsequent periods. Appeal allowed - decided in favor of appellant.
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