Warehousing of old records is not taxable storage of goods where documents lack saleability and marketability.

Storage and warehousing service under the Finance Act, 1994 applies only to storage of "goods" within the meaning linked to the Sale of Goods Act, 1930. Saleability and marketability are essential attributes of goods, so old files, records, discharged cheques, vouchers, deeds and books of account maintained for clients do not qualify as goods. On that basis, warehousing of such documents falls outside the taxable entry for storage and warehousing of goods, and the service tax demand is unsustainable.

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Issues: Whether storage and warehousing of old files, records, discharged cheques, vouchers, deeds and books of account amounts to taxable storage and warehousing of "goods" under the Finance Act, 1994.

Analysis: The definition of storage and warehousing service under the Finance Act, 1994 applies to storage and warehousing of goods. The expression "goods" is linked to the meaning in section 2(7) of the Sale of Goods Act, 1930. On that definition and the settled understanding of goods, saleability and marketability are essential attributes. Old records, files and similar documents maintained for clients are not marketable or saleable commodities. The reasoning in the cited Supreme Court decision on the meaning of goods was held applicable, even though it arose in a different statutory context, because the same concept of goods was involved.

Conclusion: Storage and warehousing of old records and similar documents is not taxable as storage and warehousing of goods, and the service tax demand was unsustainable.

Final Conclusion: The assessee's activity fell outside the taxable category invoked by the department, so the assessee succeeded and the revenue's challenge failed.

Ratio Decidendi: For purposes of taxing storage and warehousing services, "goods" must be saleable and marketable; unsaleable records and documents are not goods within the relevant service-tax entry.

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