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2015 (2) TMI 192 - CESTAT CHENNAIWaiver of pre deposit - Supply of tangible goods - Held that:- Clause 27 (b) provides the lessee (applicant) certifies that lessee is responsible for operational control of the aircraft under this lease during the term hereof. Lessee further certifies that lessee understands its responsibility for compliance with applicable Federal Aviation Regulations. Prima facie, it is noted that the maintenance of the aircraft lies with the applicant except change of engine as contended by the Ld. AR. The definition of supply of tangible goods provides that to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use without transferring right of possession and effective control of such machinery, equipment and appliances. The adjudicating authority observed that the applicant had availed aircraft on lease basis only without any legal possession. Prima facie, we find that the applicant acquired the aircraft on the basis of the lease agreement, which is the legal possession. Clause 14 of the agreement would be invoked in the event of default, that the right accrues with the owner. On the other hand the Ld. AR also contended that the maintenance is also on the applicant except replacement of the engine. The Commissioner has also accepted that the maintenance is provided by the applicant. The adjudicating authority emphasized that there is no sale in this case - appellants has a good prima facie case in its favour. - we dispense with the condition of pre-deposit of service tax confirmed against the applicants and penalties imposed upon them - Stay granted.
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