Mere leasing of storage tanks is not storage and warehousing service when no essential warehousing functions are provided.

Mere leasing of storage tanks, without providing the essential warehousing functions such as loading, unloading, stacking, security, or allied handling services, does not amount to storage and warehousing service for tax purposes. Where the agreement shows that the lessee's service provider undertakes the operational activities and the lessor receives only fixed tank rent, the receipts are not taxable under that head. The Board circular was relied on to confirm that renting space alone is insufficient to create a taxable warehousing service, and the demand could not be sustained.

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Issues: Whether the amounts received for leasing the storage tanks were taxable under storage and warehousing services.

Analysis: The agreement showed that cargo handling, pumping, heating, deliveries, loading, record keeping, security, coordination with surveyors, cleaning, and allied operations were undertaken by the service provider engaged by the lessee, while the appellant received only a fixed tank rental. The Board circular clarified that mere renting of space, without providing loading, unloading, stacking, security, or other warehousing functions, does not amount to storage or warehousing service. On the facts, there was no material to show that the appellant rendered any additional taxable service beyond renting the storage premises.

Conclusion: The receipts were not taxable under storage and warehousing services and the demand could not be sustained.

Final Conclusion: The impugned order was set aside and the appeal succeeded.

Ratio Decidendi: Mere leasing or renting of storage premises, without providing the essential warehousing functions of security, loading, unloading, or stacking, does not constitute storage and warehousing service for tax purposes.

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