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2019 (2) TMI 262 - AT - Service TaxSupply of Tangible Goods Service - legal right of possession and effective control was handed over to lessess - interpretation of statute - liability of service tax - Held that:- These computers were exclusively used by schools and Department of Education, Government of Delhi and not by the appellant. In fact, appellant had no control over the manner or duration of such usage of computers by schools or Director of Education. Possession and ownership need not go together always As a matter of fact,neither the definition given under Section 65(105)(zzzzj) nor the clarification issued by CBEC vide Circular DOF no. 334/1/2008-TRU dated 29.2.2008 specifies or mandates that for not being covered under the service of ‘Supply of Tangible Goods’, the service provider must have paid VAT or Sales Tax on the amount received as consideration for hiring out and transferring the equipment such as computers - The language of Section ibid makes it abundantly clear that for transfer of right to use the goods, ownership is not mandatorily or necessarily required to be, as provided under the provisions of Income tax law. Section 65(105)(zzzzj) of the Act is clear and admits of no ambiguity. As the appeal is allowed on merits, the ground to limitation is kept open - appeal allowed.
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