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TMI Blog2018 (3) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... on does not fall under the head of supply of tangible goods for use as provided in the Finance Act, 1994 - Moreover, the Board also clarified that in case of supply of tangible goods where the sales tax/VAT is chargeable, the same shall not be leviable to service tax. The adjudicating authority has clearly stated that no documentary evidence was produced to establish that in respect of the transactions, the VAT payment has been made. In such a situation, the matter needs to be reconsidered for verification of the actual payment of VAT. Appeal allowed by way of remand. - Appeal No. ST/85704/14-Mum - A/85333/2018 - Dated:- 22-2-2018 - Mr. Ramesh Nair, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) Ms. Puloma Dalal, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging the VAT liability. Therefore the same is not liable for service tax under the head of supply of tangible goods for use. She submits that during the supply of tangible goods, the right in possession and effective control was with the appellant and only the right to use of the goods has been transferred to the recipient of service. Therefore, it is clearly a deemed sale and hence is not taxable. There is no dispute regarding the VAT payment on such transaction. In this regard, she placed reliance on the following judgments and the Board circular:- (i) Kinetic Communications Ltd. 2017-TIOL-762-CESTST-MUM; (ii) Heligo Charters Pvt. Ltd. 2017-TIOL-2831-CESTAT-MUM; (iii) Hindustan Coca Cola Beverages Pvt. Ltd. 2016 (42) STR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, the only right to use of the equipment has been transferred, but the right in the possession and effective control remained with the appellant. Therefore, such transaction does not fall under the head of supply of tangible goods for use as provided in the Finance Act, 1994. Moreover, the Board also clarified that in case of supply of tangible goods where the sales tax/VAT is chargeable, the same shall not be leviable to service tax. In the present case, as per the submission of the learned counsel, they have discharged the VAT on the royalty received from Encore Hotels Pvt. Ltd. This issue has been considered time and again by this Tribunal in various cases as cited by the learned counsel, particularly in the case of Heligo Charters ..... X X X X Extracts X X X X X X X X Extracts X X X X
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