TaxTMI 
TaxTMI 
2015 (9) TMI 417
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.... that the charges levied at 5% were levied under Section 28-A of Madhya Pradesh Excise Act, 1915 and such charges are not liable to Service Taxd as defined under Section 65(105)(zza) of the Finance Act, 1994, which include 'Storage & Warehouse Services', is Legal and proper or otherwise, in the facts and circumstances of the case." 2. Facts in brief go to show that the Excise Officer of the District concerned had engaged certain staff to supervise the storage of Foreign Liquor undertaken by the Liquor Contractor in the warehouse in question. For the purpose of ensuring that the Contractor is carrying out various statutory functions as are contemplated under the MP Excise Act, 1915 and the MP State Excise Act, 1950 in the matter of pre....
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....rvices and, therefore, taxable. Learned Tribunal has taken note of the provisions of Section 28A of the Excise Act and has held that the amount of 5% collected under Section 28A is not for any service rendered, but is only collected as supervision charges for supervising the activities of the Contractor in the warehouse. 5. Heard Shri S. Dharmadhikari, learned counsel for the appellants, on the question raised by the Revenue. 6. Before dealing with the question involved in the matter, it would be appropriate to consider as to what is the meaning of 'service' as contemplated under Section 65(12)(a)(i) of the Finance Act, 1994 as amended from time to time. The question was considered by the Supreme Court in the case of Association....
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....p;   (Emphasis supplied) 7. From the aforesaid, it is clear that 'service tax' is a value added tax and the service provided for which the duty is payable is nothing but an activity undertaken by a person based on his performance and skill and is certain service provided by the service provider to his client. According to the aforesaid principle laid down by the Supreme Court, 'service tax' is imposed every time when service is rendered to a customer or a client by the assessee. If the act of the State Government in appointing a person for supervision and for discharging the statutory function under Section 28A of the MP Excise Act, 1950 is taken note of, it would be seen that the supervisory staff appointed by the Stat....