TMI Blog2013 (12) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... returnable containers. The supply of cylinders is part of sale of gas and it is not a separate activity in itself and therefore, the rental charges for the cylinders form part of the value of the goods sold. In view of the above, the clarification given by Joint Secretary (TRU) does not apply. Accordingly, we prima facie view that the appellants has made out a strong case in their favour for grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, during the period the containers remained in the possession of the importer, they are charged rentals for the use of the containers. The department was of the view that the renting of containers falls within the taxable service category of supply of goods for tangible use and the recipient of the service in India has to discharge service tax liability on the rent which he paid to the foreign su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing. In the present case they have imported helium gas from foreign suppliers. The helium gas is supplied in reusable and returnable containers. After usage the containers are returned to the foreign supplier. During the period of usage, the containers remains with the appellant and they have to pay rental charges to the foreign supplier for the usage for the cylinders. The physical possession an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t transaction of allowing another person to use the goods, without giving legal right of possession and effective control, not being treated as sale of goods is treated as service. In the light of this clarification, the activity undertaken by the appellant is liable to service tax. 5. We have carefully considered the submissions made by both the sides. 5.1 In the instant case, the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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