Storage and warehousing for cargo outside port premises was not prima facie covered by minor port services, limiting waiver of pre-deposit.

Storage facilities used for liquid and gaseous cargo pending customs clearance were treated as separately chargeable storage and warehousing, not as a mere letting of space. The note records that clause 87 of the Finance Act, 2002 expanded storage and warehousing to include goods such as liquids and gases, and that the applicants' own description of the service in distinct components weakened the claim that the activity was wholly covered by minor port services. Because the storage facility was outside the port premises and the limitation plea was not prima facie strong, no complete waiver of pre-deposit under Section 35F was established; substantial pre-deposit was directed.

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Issues: Whether the applicants had made out a prima facie case for complete waiver of pre-deposit under Section 35F in a dispute relating to service tax on storage facilities claimed to be part of port services.

Analysis: The storage activity was separately charged and the tank farm facilities were used for storage of liquid and gaseous cargo pending clearance by importers. Clause 87 of the Finance Act, 2002 expanded storage and warehousing to include storage of goods including liquids and gases. The facilities were not shown to be merely a letting of storage space, and the applicants themselves described the service in distinct components. The plea that the activity was wholly covered by minor port services was not found persuasive at the prima facie stage, as the storage facility was located outside the port premises. The plea on limitation was also not found strong prima facie. No case for total waiver was established.

Conclusion: Complete waiver of pre-deposit was declined, and a substantial part of the demand was directed to be deposited while the balance stood waived.

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