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TMI Blog2014 (2) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... able on the same. However, we find that as per Standard Storages terms and condition, the freight charges were ultimately to be borne by the consignee, namely, FCI and IFFCO, which is evident from the terms and condition of the said Standard Storage terms and conditions circulated by the Applicant. On reading the said condition, it is clear that the applicants are providing the services of storage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is an application for waiver of pre-deposit of service tax of Rs.6.60 Crores, penalty of equal amount imposed under Section 78 and penalties under other provisions of Finance Act, 1994. 2. At the outset, the ld. Advocate for the applicant, has submitted that the applicants are State Public Sector Undertakings and they are engaged in providing service under the category of storage and warehousi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged. He has referred to Rule 2 (d)(v) of Service Tax Rules, 1994 as was in force at the relevant time. It is his submission that according to Clause (v) of the said Rule the person who is liable to pay freight for availing GTA services, whether consignee or consignor is required to discharge the service tax. He has submitted that under the standard storage terms and condition issued by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges and later the charges were collected from the customers. 4. Heard both sides and perused the records. Prima-facie, we find that undisputedly, the applicants had rendered the services of storage and warehouses of the food grains. Accordingly, the service tax is leviable on the same. However, we find that as per Standard Storages terms and condition, the freight charges were ultimately to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et the ends of justice, we direct the applicant to deposit the an amount of Rs.30.00 lakhs (Rupees thirty lakhs only) within a period of eight weeks from today and report compliance on 01.07.2013. On deposit of the said amount, the balance amount of dues adjudged against the applicant would stand waived and its recovery stayed during pendency of the appeal. Failure to deposit the said amount would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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