TMI Blog2020 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Sulekha Beevi C.S., Member (Judicial) and Shri P. Anjani Kumar, Member (Technical) Shri B.K. Singh, Advocate for the Appellant Shri L. Nandakumar, AC (AR) for the Respondent ORDER Brief facts are that based on intelligence that the appellants are engaged in the activities of work wear rental and that such activities fall under service tax net of supply of tangible goods, Show Cause Notice was issued to the appellant proposing to demand service tax along with interest and also for imposing penalty. After due process of law, the original authority as per the impugned order confirmed the tax, interest and imposed penalty. Aggrieved by such order, the appellants are now before the Tribunal. 2. On behalf of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of leasing of work wear done by the appellant. The appellant has paid VAT on all these transactions and therefore the present demand under service tax cannot sustain. 3. He submitted that the very same issue has been considered by the Tribunal in their own case by the Chandigarh Bench in Service Tax Appeal No. 99/2016 vide Final Order No. 60716/2019 dated 2.8.2019. Further, in the appellant s own case, the Commissionerate of Hyderabad vide Order in Appeal dated 26.12.2017 had set aside the demand observing that appellant had actually transferred possession, right to use and effective control of the work wear and therefore the activity is not taxable under supply of tangible goods. 4. On behalf of the department, ld. AR Shri L. Nand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, repairing, alteration etc. of work wear with itself and their customers are not free to avail these services from any third party. d. The assessee shall collect the work wear for Servicing, Packing and Transportation on weekly basis. Thereafter, they wash, inspect and repair and finish them industrially. e. In case of termination of the contract, customers / clients shall redeem from the assesse, the work wear that have been in the use. f. In all circumstances like cancellation of agreement, the work wear remains the property of LSIP. 7. The Chandigarh Bench of the Tribunal had occasion to analyse very same issue and terms and conditions of similar agreement entered into by the appellant with clients. After analysis o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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