2012 (7) TMI 287

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....vocate For the Appellant/s   Shri V.V. Hariharan, JCDR For the Respondent/s   Per D.N. Panda   Being aggrieved by the order of adjudication dated 5.10.2007 levying service tax of Rs.1,70,22,436/- as well as education cess of Rs.3,40,449/- followed by interest and penalty under Sections 76 & 77 of Finance Act, 1944 holding that appellant had availed storage and warehouse ser....

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....oil by the appellant was done in terms of a contract with M/s.Hardy Exploration and Production (India) Inc. (in short, HARDY). The payments made by the appellant to PROSAFE was held to have been paid for storage and warehouse charges on the ground that temporary storage of processed crude and offloading of the same was provided by PROSAFE. Revenue considered that storage and warehousing was taxabl....

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....an assessee to the purview of the taxing entry under Section 65 (105) (zza), it is necessary for the Revenue to establish that service should have been provided by a storage or warehouse keeper in relation to storage and warehousing of goods. The terms storage and warehousing has been defined in Section 65 (102) reading as under :-   storage and warehousing includes storage and warehousing....

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....he nature of responsibility that was undertaken by PROSAFE as recorded by ld. Commissioner makes it clear that PROSAFE was a part of the operating team for processing and transferring crude oil. Being an agent of the process of production, it was not a storage or warehouse keeper. Therefore, service was not provided by the foreign agency as storage or warehouse keeper. Accordingly, the appellant s....