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TMI Blog2006 (9) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... rd and also the contentions which are raised by the appellants in these appeals and has dealt with them. APPEAL NO.ST/88/06 2. The appeal is directed against the order of the Commissioner (Appeals), Gwalior, made on 29th March, 2004 upholding the order-in-original imposing the penalty of Rs.500/- under Section 75-A of the Finance Act, 1994, for failure to apply for registration under Section 69 within the prescribed time limit, and further penalty of Rs. 1,000/- under Section 77 of the said Act for failure to furnish ST-3 return under Section 70 of the Act read with Rule 7 of the Service Tax Rules, 1944 with the direction to obtain Service Tax Registration and pay Service Tax due forthwith, with interest and file ST-3 returns. 3. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for purposes other than those specified in Clause (2) of that Article, nor do the provisions of Article 289 preclude the Union from imposing or authorizing the imposition of excise duties on the production or manufacture in India on the property of a State used for purposes other than those specified in clause (2) of that Article (see paragraph 31), that the "Storage and Warehousing Service" was not exempt from Union taxation under Article 289 (1) of the Constitution and that the said activity was a commercial activity falling within the purview of Service Tax. Therefore, warehousing of Indian made foreign liquor fell within the purview of Service Tax under the category of "Storage and Warehousing Service" and the Excise Department of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 65 of Finance Act, 1994 w.e.f. 16.08.2002. While considering the contention that the Excise Department of the Government had levied the charges as supervision charges, which did not fall within the ambit of the provisions of Service Tax Rules, 1994, the Appellate Commissioner held that, the services provided by the appellants squarely fall within the ambit of taxable services and the charges recovered were subject to payment of the Service Tax. 6. The present appeals have been filed by the State of Madhya Pradesh through the Assistant District Excise Officer against the Commissioners have made the impugned orders. Therefore, it is not a dispute between the State and the Union of India in their Constitutional capacity. We, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, denatured spirituous preparation or hemp shall be under the supervision of such Excise staff a the Excise Commissioner may deem proper to appoint in this behalf and that the person manufacturing, importing, exporting, transporting, storing, selling, purchasing, using collecting or cultivating the intoxicant or denatured spirituous preparations shall pay to the State Government towards the supervision charges as levy as may be imposed by the State Government in this behalf: Provided that the State Government may exempt any class of person or any Institution from paying the whole or any part of such levy." 8.1 It will be clear from the above provision that the "levy" could be imposed by a general or special order by the State Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges can be described as consideration for services provide for storage and warehousing. Therefore, the entire basis for the demand is erroneous. 9. As regards the provisions of Article 289 of the Constitution of India, is a settled legal position that the exemption provided is of property and income of State from Union taxes and since, the import or export duties or excise duties were not taxes on property including the goods as such, but on the happening of a certain event in relation to the goods, namely, import or export of goods or production, or manufacture of goods, Article 289 did not debar the Union from levying customs and excise duties on goods imported or manufactured by a State irrespective of whether they were used or not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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