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2024 (1) TMI 727 - CESTAT AHMEDABADDemand on the plant and machinery component of the agreement of the M/s. Wimplast Limited - demand primarily for the reason that appellant has not paid the VAT - HELD THAT:- From the impugned order it is seen that no evidence in support of the claim that the right of possession and effective control has not been transferred is presented. The only reason cited in the order is that the appellant has not paid VAT on the said transaction and therefore it implies that the right of position in effective control has not been transferred. Department has to produce positive evidence to show that right of possession and effective control has not been transferred. Thus there are no merit in the impugned order seeking to clarify the activity of renting of plant and machinery as provision of supply of tangible goods service - Moreover, the appellant has discharged the tax along with interest. From this circumstances it appears it is fit case for invoking under Section 80. The penalties imposed in respect of this transactions are therefore also liable to be set aside under Section 80 of the Finance Act, 1994. The impugned order is set aside - appeal is allowed.
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