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2024 (1) TMI 184 - CESTAT AHMEDABADLevy of service tax - Supply of Tangible Goods Service - legal right of possession and effective control has been transferred by the appellant to WTCPL or not - HELD THAT:- Merely because VAT is not paid, it cannot be said that the nature of transaction has changed. Payment of VAT or otherwise can only be an indicator, however the conclusion regarding transfer of right of possession and effective control can only be derive from the terms of agreement. It is seen that the terms and conditions are in the nature of the owner protecting his property and legal rights to ownership. These terms and condition by no stretch of imagination can be understood to mean that the appellant did not transfer the possession and effective control of the plant and machinery. The clause 5 of the agreement relates to the proper use of machinery and clause 6 is intended to protect the title of the appellant in the leased property. None of the clauses cited by the Commissioner indicate retaining of possession or effective control of the plant and machinery. Without any evidence to hold that effective control and possession has not been transferred, it could not held that any service in the nature of “Supply of Tangible Goods” has been provided. There are no merit in the impugned order, the same is set aside and appeal is allowed.
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