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TMI Blog2015 (9) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... o a client. In view of the above, we see no error in the order passed by the Tribunal holding that the supervision in the warehouse undertaken by the State Government does not amount to ‘service’ and is not taxable under the head ‘Storage and Warehouse Services’. It does not fulfil the requirement of service as provided under Section 65(105)(zza) of the Finance Act, 1994 and is not included in the purview of the words ‘Storage and Warehouse Services’ - On the contrary, it is only a fees levied for the supervision undertaken by the State Government to ensure proper functioning of the warehouse and storage in accordance to the statutory requirement. - appeals dismissed - Decided against the revenue. - MACE No. 16 of 2006 and CEA No. 17 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rehouse. 3. For the purpose of deputing staff for supervision of the work, Section 28A of the Excise Act enables the Government to recover supervision charges from the Contractor, holding that this charge i.e... supervision charges collected @ 5% under Section 28A is not a service rendered by the Department to the Contractor, service tax chargeable under the category/classification storage and warehouse services as provided in the Notification No. 08/2002-S.T., dated 1-8-2002, has been imposed, these appeals have been filed by the Revenue after the Tribunal by the impugned order held that the service rendered for providing supervisory staff is not a service but a statutory duty discharged for conducting supervision of the godown as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38, while dealing with the question of nature and character of service tax , the Hon ble Supreme Court deals with the import and meaning of the word service in the following manner : 38. ... That, service tax is a value added tax. The value addition is on account of the activity which provides value addition, for example, an activity undertaken by a chartered accountant or a broker is an activity undertaken by him based on his performance and skill. This is from the point of view of the professional. However, from the point of view of his client, the chartered accountant/broker is his service provider. The value addition comes in on account of the activity undertaken by the professional like tax planning, advising, consultation, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material in the warehouse carries out the activities strictly in accordance to the MP Excise Act, 1950; all the requirements with regard to preparation of inventory, transportation, movement, storage and even insurance of the property is undertaken as per the statutory provision and the excise policy. What is done by the supervisor/supervisory staff so appointed by the State Government is not to provide any service on behalf of the State Government to the Liquor Contractor, but to ensure that all the activities in the warehouse where the liquor is stored is carried out in a proper manner without there being any contravention to the rules or regulation governing distribution, manufacturing of liquor, no evasion of duty etc. 8. That being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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