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2018 (3) TMI 193 - AT - Service TaxSupply of tangible goods for use - renting of immovable property service - demand of service tax - Held that: - the appellant has supplied various tangible equipments and assets for use for renting the restaurant to Encore Hotels Pvt. Ltd. for which they were charging royalty mutually agreed from time to time - From the MOU it is observed that the various equipments were supplied by the appellant to Encore Hotels Pvt. Ltd. In such transaction, the only right to use of the equipment has been transferred, but the right in the possession and effective control remained with the appellant. Therefore, such transaction does not fall under the head of supply of tangible goods for use as provided in the Finance Act, 1994 - Moreover, the Board also clarified that in case of supply of tangible goods where the sales tax/VAT is chargeable, the same shall not be leviable to service tax. The adjudicating authority has clearly stated that no documentary evidence was produced to establish that in respect of the transactions, the VAT payment has been made. In such a situation, the matter needs to be reconsidered for verification of the actual payment of VAT. Appeal allowed by way of remand.
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