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TMI Blog2017 (4) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... agons in terms of agreement dated March, 1996. The agreement and the supply of wagon were much prior to the tax entry introduced in 2008. The tax entry talks about supply of tangible goods. When such supply has occurred when there was no tax liability, there is no question of service tax payment on the same - the right of position and effective control is with the Railways and as such, the tax ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the liability of the appellant to an amount of ₹ 6,61,748/- and imposed equal amount of penalty under Section 78 alongwith penalty under Section 77. 3. The ld. Counsel appearing for the appellant contested the finding mainly on two grounds:- (a) The supply of wagons to Railways by the appellant will not fall under the taxable service of "supply of tangible goods". The wagons are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore 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 ld. A.R. reiterated the findings of the Original Authority and submitted that the contract envisages termination and re-possession of the supplied goods. He also submitted that in the goods of such nature, for operational reasons, the Railwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [apart from our conclusion that the transactions in relation to all the three tankers (covered by long-term and short-term charters) fall within the exclusionary clause of Section 65(105)(zzzzj)], the periodical payments remitted by the assessee in relation to the long term charters of "Disha" and "Raahi" are in relation to the supply of these tangible goods, as a one time event which occurred pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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