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TMI Blog2019 (1) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... on 18/09/1996 and last batch of 42 BCNA wagons were handed over to Railways on 31/05/1997 as per the contract entered by them for Indian Railways vide their contract dated 27/04/1998. As per the contract the appellant were raising invoices on the Indian Railways on quarterly basis against which the appellant received rent/lease charges from the Indian Railways. 2. The supply of tangible goods service came into tax net from 16/05/2008 and thereafter the department entertained a view that since the invoices are being raised for leasing of the wagons on regular basis and payment is also being received against such leasing and, therefore, the wagons which have already been given on lease basis to Indian Railways are classifiable under supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding the right to maintain and modify the said wagons. (b) Admittedly, the supply of tangible goods, wagons, happened in 1996 in terms of the agreement of March, 1996. The tax entry was introduced in the Finance Act, 1994, only in the year 2008. As such, there can be no tax liability on the activity of supply of tangible goods which happened much earlier, before the introduction of tax liability. The agreement as well as the act of supply of tangible goods occurred much before the tax liability arose. He relied on the decision of the Tribunal in Petronet LNG Ltd. vs. CST, New Delhi - 2013 - TIOL -1700 - CESTAT- Delhi. 4. The learned A.R. reiterated the findings of the Original Authority and submitted that the contract envisages termi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the impugned order is not sustainable. We also note that the scope of tax entry, even otherwise, does not apply to the nature of transaction under consideration. It is an admitted fact that the effective control of the supplied wagons are with Railways. We are not in agreement with the findings of the Original Authority that in a case like this effective control is not relevant to decide the tax liability. The statutory definition very clearly stipulates that supply of tangible goods should be without transferring right of possession and effective control. In this case, we note, the right of position and effective control is with the Railways and as such, the tax entry has no application for the present transaction. 8. In view of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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