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TMI Blog2014 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... sing service from the foreign service provider hence the appellants are liable to pay service tax in view of the provisions of Section 66A of the Finance Act read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 on reverse charge mechanism. 3. The contention of the appellants is that the appellants are engaged in the manufacture and sale of various gases. For the manufacture of their final product, the appellants are importing liquid helium. The liquid helium is to be stored at extremely low temperature i.e. minus (-) 269 O C. The liquid helium is procured, stored and transported through vacuum insulated tanks. The appellants are placing purchase orders with the foreign supplier for the import of helium and the helium is being supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants also relied upon the decision of the Tribunal in the case of Finolex Industries Ltd. vs. CCE, Pune reported in 2007 (7) STR 408, where the LPG storage tanks were rented to BPCL for consideration and the Revenue sought to tax the Consideration so received under the category of 'storage and warehousing service'. The Tribunal set aside the demand. In these circumstances, the contention is that the demands are not sustainable. 5. The appellants also submitted that as per the definition of 'storage and warehousing', both the activities are to be undertaken i.e. storage as well as warehousing. 6. The contention of the Revenue is that the appellants are importing helium in the tanks and the helium stored in the tanks in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding the scope of warehousing service. The relevant portion of the circular is reproduced below: "3. Storage and warehousing service for all kinds of goods are provided by public warehouses, private warehouses, by agencies such as the Central Ware Housing Corporation, Air Port Authorities, Railways, Inland Container Depots, Container Freight Stations, storage godown and tankers operated by private individuals etc. The storage and warehousing service provider normally make arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provide insurance cover etc ......... 5. It has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rehousing service provider normally makes arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provides insurance cover etc. The Board further clarified that in some cases a storage owner only rents the storage premises and does not provide any service such as loading, unloading etc. It has been clarified that mere renting of space cannot be said to be in the nature of service provided for storage and warehousing of goods. Essential test is whether the storage keeper provides for security of goods, stacking, loading/unloading of the goods in the storage area. 11. In view of the above circular, we find that the exporter of helium cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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