TMI Blog2019 (4) TMI 1696X X X X Extracts X X X X X X X X Extracts X X X X ..... nes supplied by them to their own unit at Rudrapur. Supply of Bailing Press Machine to a third party person - HELD THAT:- The payment or non-payment of VAT is not one of the requisite condition of the definition of Supply of Tangible Goods. It is settled law that no condition or requirement, which is not a part of the definition can be introduced by the adjudicator. No doubt the payment of VAT would establish the transaction to be a deemed sale and thus not covered by the definition but non-payment by itself does not lead to the contrary, especially when it stands established from the agreement entered between the parties that the supply was alongwith possession and effective control of the machines - Demand set aside alongwith penalty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem to their own unit located at Rudrapur. Though the said supply was made under debit notice, learned Chartered Accountant submits that no consideration was received by them and the said debit notices were only for the purpose of accounting. He further submits that inasmuch as the transaction was between the appellants and his own unit, there was no service provided by the present appellant. Another part of the demand is in respect of supply of bailing press machine to third party with the right of possession and effective control. As such, he submits that the same does not fall under the definition of Supply of Tangible Goods . By drawing our attention to the various clauses of the agreement, which stands reproduced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the learned Chartered Accountant that no service tax liability would arise in respect of machines supplied by them to their own unit at Rudrapur. 4. As regards the supply of Bailing Press Machine to a third party person, we note that the Lower Authorities have referred to the various clauses of the agreement establishing that the right of possession shall rest with the user who would be having overall supervision and effective control of the machines. In terms of the definition of Supply of Tangible Goods , the activity would not be considered as taxable services if the right of possession and effective control of the machine is transferred to the recipient of the machines. The payment or non-payment of VAT is not one of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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