Warehousing service test: renting insulated tanks for helium import was held to be tank rental, not taxable storage.

Importing helium in insulated tanks, paying rent for the tanks, and handling unloading, transport and inventory at the importer's premises was not treated as storage and warehousing service for reverse charge service tax. The relevant test was whether the foreign supplier, as a storage keeper, provided warehousing functions such as security, stacking, loading and unloading; mere renting of tanks or space was insufficient. On the admitted facts, the supplier had no control over the tanks after shipment and the importer undertook the handling and stock-keeping at its factory. The arrangement was therefore characterised as tank rental rather than taxable warehousing service, and service tax under reverse charge did not apply.

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Issues: Whether the activity of importing helium in insulated tanks, paying rent for the tanks, and handling unloading, storage and inventory at the importer's premises constituted storage and warehousing service so as to attract service tax under reverse charge.

Analysis: The definition of storage and warehousing covered goods including liquids and gases, and the taxable service required provision of storage or warehousing by a keeper. The Board's circular clarified that mere renting of space is not enough and that the essential test is whether the storage keeper provides security, stacking, loading, unloading and similar warehousing functions. On the admitted facts, the exporter had no control over the tanks after shipment, while the importer handled unloading, transport to factory and stock keeping. The arrangement was therefore found to be only rental of tanks and not a warehousing service provided by the foreign supplier.

Conclusion: The activity was not classifiable as storage and warehousing service and service tax was not payable by the appellants under reverse charge.

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