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2012 (4) TMI 232 - AT - Service TaxLevy of Service Tax- providing taxable services under the category ‘Transportation of goods through pipelines’ – AO found income collected for supply of pipes, measuring equipments etc. at the time of providing new gas connection thus appellant should have paid the Service Tax treating the service as 'Supply of tangible goods' – assessee contented that merely supplying, installing, maintaining the measuring equipment to facilitate determination of quantum of gas there is no service element involved in this supply – assessee stated that the ownership of equipment remains with the appellant at all time and used the equipment for their own purpose – Held that:- the customer never has a right of possession since it would never become his own property at all - the Company has the right to repossess the meter and other equipment at any time and whenever it is disconnected, the meter will become the property of the Company - therefore, the supply of goods is without transfer of right of possession - the customer cannot also obtain meter and other equipment from any other source -there is no doubt that the customer also has a use of measuring equipment - the conclusion is that the appellants have provided the service and are liable to Service Tax - appellants have not been able to make prima facie case in their favour hence should deposit 25% of the Service Tax demanded in the impugned order within 8 weeks of Order date – against assessee.
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