2012 (7) TMI 287

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....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 services and incurred liability under Financ....

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.... 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 taxable service and raised demand by the impugned....

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....der 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 services for goods including liquids and gases but....

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....OSAFE 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 shall not be liable to pay service tax as the recipien....