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TMI Blog2010 (1) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Revenue has filed this appeal under Section 35G of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 (for the brevity called 'the Act'), challenging the Final Order No. ST/113-119/08 dated 20-6-2008 [2008 (12) S.T.R. 176 (Tri.-Del.)], passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for the brevity called 'the Tribunal'). 3. The Tribunal in the aforementioned Order has taken a view that the storage of sugar by the respondent-Assessee at the behest of Government of India neither makes the respondent-Assessee 'storage or warehouse keeper' nor the Government of India client. The Tribunal has set aside the demand raised by the Appellant-Revenue. The Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Appellant-Revenue issued a Show Cause Notice to the Respondent-Assessee raising the demand of service tax amounting to Rs. 11,50,955/- alleging that amount received by Respondent-Assessee as buffer subsidy is covered within the definition of 'Storage and Warehousing' services. The Adjudicating Authority vide its Order-in-Original dated 13-7-2006 confirmed the demand of service tax and further imposed penalty under Section 75, 76 and 77. 6. Feeling aggrieved from the aforesaid Order-in-Original, the Respondent-Assessee filed an appeal before the Commissioner (Appeals), who vide its Order-in-Appeal dated 7-5-2007 partially vacated the demand of service tax and confirmed the remaining. The Commissioner (Appeals) upheld the lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the buyers of its own choice. The Dealer-Assessee has stored goods in compliance to directions of government of India issued under Sugar Development Fund Act, 1982. The Respondent-Assessee has received subsidy not on account of services rendered to Government of India but has received compensation on account of loss of interest, cost of insurance etc. incurred on account of maintenance of stock. The act of Respondent-Assessee can not be called as rendering of services. The Tribunal has rightly held that just because the storage period of free sale sugar had to be extended at the behest of Government of India, neither the Appellant-Revenue sugar mills becomes 'Storage and Warehouse keeper' nor the Government of India become thei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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