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TMI Blog2021 (9) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... their clients on the conditions mentioned in the agreements entered with their clients. Terms and Conditions of sample agreements is as under:- (i) That the appellant undertook to deliver, wash and service individual customized workwear to the clients. Each worker will be provided with the workwear of his size which will be measured by the appellant along with logo and labels as specified. (ii) The appellant would own the workwear and will have exclusive right to wash and service the same. (iii) The workwear shall be collected by the customer once a week for being sent to Lindstrom for servicing. (iv) If the workwear cannot be leased because of wear and tear, it will be returned to Lindstrom but the customer shall pay the price as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of possession of garments is fully transferred to the client and goods are under effective control of the clients. The clients could use the garments at their own free will. The supplier has not imposed any restriction in use of the garments. The ownership always remained with appellant. The law distinguishes between ownership and possession. Till the garments are redeemed, the ownership of the workwear remains with the appellant. However, possession and the right to use is transferred to the buyer or the lessee. As the ownership of workwear remains with the appellant, it is his discretion and duty to maintain the same properly. Washing and proper upkeep of the workwear, which is essential for the maintenance of the workwear is being done b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under the category of supply of tangible goods so as to attract service tax. The terms and conditions of the agreement has been briefly incorporated in the order in original which is as under:- "The terms and conditions of the agreement are as follows:- a. The assessee will only lease the work wear to their customers / clients b. The assessee arranges the fittings which finally determine the needed number of specific work wear and service free per product is charged for the same. LSIP is entitled to take an inventory of all products. c. The assessee owns the leased work wear and keeps the exclusive right of washing, maintenance, repairing, alteration etc. of work wear with itself and their customers are not free to avail these ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible goods so as to attract service tax. From the decisions cited above, we think it is not necessary to take up the detail discussion of the issue since the same has been already analysed by the Chandigarh Bench.
9. Following the said decision, we are of the considered opinion that the impugned order cannot sustain. The same is set aside and the appeal is allowed with consequential relief, if any."
8. Following the decisions, we are of the considered opinion that the demand raised cannot sustain and requires to be set aside, which we hereby do. The impugned order is set aside. The appeal is allowed with consequential relief if any, as per law.
(Operative portion of the order was pronounced in open court) X X X X Extracts X X X X X X X X Extracts X X X X
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