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2019 (4) TMI 1696 - CESTAT ALLAHABADTaxability - Supply of Tangible Goods Service - supply of machines to its own unit - demand of service tax with interest and penalties - distinct persons or not - HELD THAT:- As per the definition of ‘Supply of Tangible Goods’, the same would be taxable only when the services are provided by a person to another person. Where the supplier and recipient of the machines in question is the same identity, it cannot be said that there were two different persons, to be regarded as provider and recipient of services - thus, no service tax liability would arise in respect of machines supplied by them to their own unit at Rudrapur. Supply of Bailing Press Machine to a third party person - HELD THAT:- The payment or non-payment of VAT is not one of the requisite condition of the definition of Supply of Tangible Goods. It is settled law that no condition or requirement, which is not a part of the definition can be introduced by the adjudicator. No doubt the payment of VAT would establish the transaction to be a deemed sale and thus not covered by the definition but non-payment by itself does not lead to the contrary, especially when it stands established from the agreement entered between the parties that the supply was alongwith possession and effective control of the machines - Demand set aside alongwith penalty. Appeal disposed off.
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