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TMI Blog2012 (4) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... te for the appellant submits that the provisions relating to storage and warehousing under section 65(102) and 65(105)(zza) of the Finance Act, 1994 applies only in respect of good as defined in the Sale of Goods Act, 1930 Whether the records such as discharged cheques, vouchers, deeds, agreements, books of accounts of banks and corporate houses would come under the category of ‘goods' as per the provisions of section 2(7) of the Sale of Goods Act, 1930 or not - it is clear that to constitute goods, saleability is an essential criteria. If "saleability" was not a relevant criterion, there was no necessity to refer to the definition of goods, under the Sale of Goods Act, 1930. Sale of Goods Act governs sale and purchase of goods - the vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants were raising bills on their clients for a) segregation and packing charges b) storage charges c) retrieval charges, on which they were not discharging any service tax liability. It was submitted by them that the said activity was undertaken by them for storage and retrieval of records of banks and corporate houses and the records consisted of discharged cheques, vouchers, agreements, books of accounts etc. which were not intended for sale and were not having any commercial value. The same were only maintained to comply with the statutory provisions for discharging any obligation/contract with customers for legal purposes. For rendering these services they raised bills on their clients towards 1) segregation, labeling and marking of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09/- for the period from 01.10.2005 to 30.09.2006 as the same formed as in the previous notice and the case was assigned to Commissioner of Central Excise, Thane I for adjudication. The same was adjudicated vide order-in-original V-Adj/SCN/15-46/2009 dated 17.03.2010 confirming the service tax demand of ₹ 3,21,11,343/- classifying the service rendered by the appellant under storage and warehousing services along with interest thereon and also imposing a penalty under section 76 and 78 of the Finance Act, 1994. The appellants are before us against the said order. 5. The Ld. Advocate for the appellant submits that the provisions relating to storage and warehousing under section 65(102) and 65(105)(zza) of the Finance Act, 1994 applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able property and records, files etc. are movable property, and hence they are covered under the definition of goods . The condition of sale is not necessary for levy of service tax. Therefore, he prays for setting aside the order dated 26.05.2008 and upholding the order dated 17.03.2010 confirming the demand of service tax. 7. We have carefully considered the rival submissions. 7.1 The short question for consideration is whether the records such as discharged cheques, vouchers, deeds, agreements, books of accounts of banks and corporate houses would come under the category of goods' as per the provisions of section 2(7) of the Sale of Goods Act, 1930 or not. Section 65(102) of the Finance Act defines storage and warehousing as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Apex Court that goods are something which can come into the market for being bought and sold. 7.2 The Hon'ble Apex Court in R.D.Saxena vs. Balram Prasad Sharma (supra) has clearly held that the case files maintained by a bank pertaining to their clients cannot be equated with goods as they are not saleable goods and they do not have any marketability. 7.3 In the said case, the respondent Bank retained the appellant (Advocate) to represent the bank in cases where the bank was a party. Later, the bank terminated the retainership and asked him to return all case files. The appellant advocate sent a bill for remuneration and informed the bank that the case files would be returned only after the dues were settled. The issue befo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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