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TMI Blog2019 (1) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... /2018 - Dated:- 18-12-2018 - Shri C.L. Mahar, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Shri Narender Singhvi, Advocate for the appellant. Shri Vivek Pandey, Authorized Representative (DR) for the Respondent. ORDER Per. C.L. Mahar :- The brief facts of the matter are that the appellant are manufacturer of cement. The appellant have got 168 BCNA (type) wagons manufactured and same were given by them to Ministry of Railways on lease basis. The first lot of 42 wagons was supplied to Indian Railways on 18/09/1996 and last batch of 42 BCNA wagons were handed over to Railways on 31/05/1997 as per the contract entered by them for Indian Railways vide their contract dated 27/04/1998. As per the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w :- 3. The learned 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 supplied to Railways, who control and manage the said wagons. The finding of the original authority that effective control of the wagons is not a criteria to decide the tax liability, is legally untenable. The terms of agreement clearly stipulate that the Railways will have full and effective control of the wagons including the right to maintain and modify the said wagons. (b) Admittedly, the supply of tangible goods, wagons, happened in 1996 in terms of the agreement of March, 1996. The tax e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reasons [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 prior to introduction of this taxable service w.e.f. 16-5-2008 and are therefore not leviable to Service Tax. We hold accordingly. 7. As such, on this ground alone, the impugned order is not sustainable. We also note that the scope of tax entry, even otherwise, does not apply to the nature of transaction under consideration. It is an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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