2022 (11) TMI 291 - AT - Service Tax
Classification of services - Supply of tangible goods service - equipment namely drill pipes to M/s Cairn Energy India Private Limited, Gurgaon on rental basis - right of possession and control of equipment was with the appellant - HELD THAT:- The appellant is inter-alia engaged in supply of tangible goods service. The appellant has stated that whenever they are providing any equipment along with expert manpower they are paying service tax as can be seen from various invoices raised by them. He pointed out in some such invoices when drill pipes are supplied along with other equipment to be handled by their own personnel then the rent of drill pipes is also included in the assessable value in supply of tangible good service. He pointed out that in the case of supply being made to M/s Cairn Energy no expert manpower was sent along with pipes and it was merely a supply of pipes to M/s Cairn Energy India Private Limited, Gurgaon. The said pipes were used independently by M/s Cairn Energy India Private Limited, Gurgaon and rent was to be calculated on the basis of actual usage of goods in terms of the service order dated 13.08.2009.
Merely because a record of actual use of goods is kept it does not amounts to having effective control and possession of the goods. It is also asserted by the appellant that they have paid VAT on the said transaction - the argument of Revenue that in absence of any manpower of appellant at the site where such drill pipes were sent, how effective control and possession could be exercised cannot be accepted.
There are no merit in the argument of the Revenue - appeal allowed.