TMI Blog2020 (3) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... te authority has held that the renting of ISO tank falls under the category of supply of tangible goods service only on the reasoning that there is no transfer of right of possession and effective control in respect of the leased ISO tank. However, no proper reasoning was given as how there is no transfer of right to possession and effective control. From the facts narrated by the learned counsel, it is found that after supply of ISO tank the same was under their control, was operated by them with their own employees, and repair and maintenance if any was also carried out by the appellant themselves. Thus, the right to use and effective control was with appellant. However, both the lower authorities have not carefully gone through the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O tank obtained on lease from the foreign owners. Accordingly, show cause notice proposing recovery of Service Tax not paid along with interest and imposition of penalties was issued. The Adjudicating Authority vide Order in Original confirmed the demand with interest and imposed penalty under section 76 and 77 of the Finance Act 1994. Being aggrieved with the Order in Original, the appellant filed appeal before the Commissioner (Appeal) on the ground that ISO tank was handed over to the appellant with full right of possession and effective control during the renting period with their own labour force to operate including repair and maintenance. The Learned Commissioner dismissed the appeal and upheld the Order in Original. Therefore, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the leased ISO tank. However, no proper reasoning was given as how there is no transfer of right to possession and effective control. From the facts narrated by the learned counsel, we find that after supply of ISO tank the same was under their control, was operated by them with their own employees, and repair and maintenance if any was also carried out by the appellant themselves. With these facts, it prima facie appears that the right to use and effective control was with appellant. However, both the lower authorities have not carefully gone through the contract and not given reasoning under the given facts on why there is no transfer of right and effective control by the foreign supplier to the appellant. Therefore, in our considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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