Service tax — Clearing & Forwarding Agents — Certain clarification - Service Tax - V/DGST......./2/99/10683

Service tax Clearing Forwarding Agents Certain clarification F.No. V/DGST/21(9)/C F/2/ 99/10683, dated 6-6-2000 of the Mumbai Directorate of Service Tax The office of the Commissioner of Central Excise, Service Tax Cell, Chennai-II Commissionerate, has sought for a clarification, on the applica- bility of Service Tax, for the services rendered by a company/assessee which are as follows :- "The company/assessee owns storage tanks made of mild steel in different parts of India. These tanks are used for storing liquids/ chemicals for which customers pay rents based on the tanks capacity. In addition there are pipelines, valves, pumps etc., connected with these tanks for the purpose of loading the cargo from the ship and unloading the same to the road tankers. The facilities of storage tanks are offered by the company/assessee for the use of customers for varying periods and monthly rents are collected for the same. The company/assessee gives pumps, pipelines and storage tanks on monthly rental basis" . The matter has been considered by this Directorate, and I have been directed to clarify that the activities of M/s. IMC Ltd., Chennai, would fall within the definition of Clearing Forwarding Agents, under Section 65(12) of the Finance Act, 1994. You are requested to conduct a survey to ascertain if any such company/ establishment are in your Commissionerate and take action for registration of the same. Results of action taken may be intimated to this office.