Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (12) TMI AT This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2016 (12) TMI 538 - AT - Service Tax


Issues:
1. Whether the demand of service tax under storage and warehousing service is justified.
2. Whether the demand of service tax under C&F agent service is valid.

Analysis:

1. Storage and Warehousing Service:
The controversy arose during a departmental audit when the Revenue alleged that the assessee received charges for storage and warehousing service. The Revenue demanded service tax based on the difference in income shown in the trial balance and ST-3, amounting to ?65,26,695 under storage and warehousing charges. The Commissioner dropped the demand, leading to the Revenue's appeal. The Revenue argued that the charges accounted for under warehousing charges in the balance sheet are taxable. However, the Commissioner found that the assessee only provided renting of immovable property service, not storage and warehousing service. The Tribunal upheld the Commissioner's decision, stating that renting space does not qualify as storage and warehousing service unless specific activities like security, loading, unloading, and stacking of goods are provided.

2. C&F Agent Service:
The scope of C&F service was clarified based on a Tribunal's Larger Bench decision, indicating the activities undertaken by a C&F agent. The Revenue contended that service tax should be levied on the total amount received by the agent, including reimbursed expenses. However, the Commissioner held that reimbursable expenses need not be included in the taxable service value. The Tribunal agreed with the Commissioner's findings, stating that the service tax should be based on the amount charged for providing the service, not including reimbursable expenses. The Tribunal referenced relevant case laws supporting this view and upheld the impugned order, rejecting the Revenue's appeal.

In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the Commissioner's decision to drop the demand for service tax under both storage and warehousing service and C&F agent service. The judgment provides detailed analysis and legal interpretations supporting the decisions on each issue raised in the appeal.

 

 

 

 

Quick Updates:Latest Updates