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TMI Blog2018 (8) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... nk rental charges from M/s AAL. It is also seen from the records that M/s AAL have charged cargo handling charges from the appellant for storing and handling their consignments of edible oils which are stored in the said tanks - There is nothing on record to show that appellant herein had besides collecting rental charges from M/s AAL had rendered other services and collected any further amount. Similar issue came up before the Tribunal in the case of Finolex Industries Ltd (supra) (wherein, one of us, M.V.Ravindran was a member) [2007 (5) TMI 27 - CESTAT,MUMBAI] has held that mere collection of an amount for leasing of the tanks for the usage of storage tanks cannot be considered as providing of storage and warehousing services - The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge terminal located at Kakinada as well as different ports/places. Appellant were paid a fixed sum by M/s AAL in terms of the agreement. Lower authorities were of the view that the appellant is required to discharge the Service Tax on the amounts received by them from AAL under the category storage and warehousing services during the period 16.08.2002 to 30.06.2005. after recording the statements of various persons, the show cause notice dated 29.07.2005 was issued for the demand of service tax liability along with interest and for imposition of penalties. Appellant agitated the show cause notice on the ground that they are only renting out their storage facilities and is not covered under storage and warehousing services as per CBEC ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds does not mean that they are rendering any services which would get covered under storage and warehousing services . He would rely upon the decision of the Tribunal in the case of Finolex Industries Ltd [2007 (7) STR 408] and INOX Air Products Ltd [2014 (36) STR 391] as also [2015 (38) STR 179]. 4. Learned Commissioner (AR) submits that appellants are custodian of imported edible oils under the Customs Act and are providing their storage tanks to certain customers for storage; the services of storage and warehousing are jointly provided by appellant and M/s AAL as is evident from the agreement and appellant were raising invoices towards tank rental charges though it is in respect of various services rendered by them. It is her submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cargo, pumping the cargo to storage tanks, heating the cargo, if required, making deliveries of the cargo, weighment of cargo, loading of cargo into tankers/railway rakes, keeping records of the cargo, deliveries, security of the cargo, co-ordination with surveyors, cleaning of the tanks, pipeline and pigging operation would lie with M/s AAL and they are free to charge consideration for these services rendered by them to the importers of edible oils; who are using the facility of storage of oils in the Kakinada area. The said agreements also provide that M/s AAL will pay a fixed sum of ₹ 1,00,000/- to the appellant as per the agreements. On perusal of agreement and invoices raised by the appellant on M/s AAL, it is noticed that ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovider 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. Service provided in ports has already been covered under the category of port service. 5. It has been stated that in some case a storage owner only rents the storage premises. He does not provide any service such as loading/unloading, stacking, security etc. A point has been raised as to whether service tax would be leviable in such cases. It is clarified that mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods. Essential test is whether the storage keeper provides fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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