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2020 (2) TMI 1205 - AT - Service TaxLevy of service tax - rent received for allowing the harvesting contractors to use the Appellant’s bullock carts with tyres without any bullocks or driver for transporting the sugarcane to the sugar factories - period involved is 21.1.2015 to 31.3.2016 i.e. post negative list - HELD THAT:- Undoubtedly the Appellants have supplied the Tyre Bullock Carts without bullocks or driver to the recipient of service i.e. farmers. The farmers have to engage their own bullocks and drivers for utilising the bullock carts. If the bullocks are of the farms and the drivers are also appointed by them then the right of possession and effective control cannot be said to be rest with the Appellants. Merely because in the agreement some route has been suggested by the Appellants which the farmers have to follow or that if during the temporary stoppage of work in the sugar factory, the employee or the labourer of the contractor/farmer are not permitted to engage in any other work or are not paid remuneration for that day, does not make them under the effective control of the Appellants. The remuneration to them, in any case, has to be paid by their contractor/farmer only and they cannot claim it from the appellants - Therefore from the facts on record it is clear that the appellant has delivered the effective possession and control of the Tyre Bullock carts to the farmers/contractors. Tyre Bullock Carts without bullocks and driver, provided by the appellant on rent for the purposes relating to agriculture/agricultural produce without having any right of possession or effective control of the Appellants over them, falls under negative list as discussed above and is not liable to Service Tax under the category of Supply of Tangible Goods Service. Appeal allowed - decided in favor of appellant.
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