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2013 (7) TMI 96 - AT - Service TaxSupply of Tangible goods for use - Services u/s Section 65(105)(zzzzj) - stay the appellant provided the rigs for drilling operations/ drilling wells in the offshore waters did not discharge any service tax liability on the services rendered - appellant contended that the activity undertaken is not "supply of tangible goods' but comes under the category of drilling of oil wells Held that:- Prima facie after going through the agreement, it was held that the service undertaken by the appellant falls under the category of "supply of tangible goods for use"- the agreement is for charter hiring of drilling units - the compensation is fixed on per day basis - thus even when no drilling takes place, the service provider is compensated thus the transaction involved is one of service as it was decided in Indian National Ship owners Association Vs. UOI (2009 (3) TMI 29 - BOMBAY HIGH COURT). Validity of show cause notice The notice was served within a period of one year thus the show-cause notice is within time and the allegation of time bar is not sustainable. Appellant directed to submit 50% of the amount - stay granted partly.
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