TaxTMI 
TaxTMI 
2007 (5) TMI 27
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....e use in the manufacture of the final products. The appellant had also constructed and commissioned 2 LPG gas storage tanks and associated equipments for handling Liquefied Petroleum Gas in order to use the same in their manufacture of final products. Some where down the line, appellants found out that the said facility of LPG storage tanks and associated equipments is not beneficial to them and hence entered into an agreement with M/s. Bharat Petroleum Coronation Ltd. (BPCL) for leasing/licensing LPG tanks. The terms and conditions of the agreement indicate that BPCL was to pay the appellant consideration for using the LPG storage tanks for storing the LPG imported by BPCL. Appellant was held to be free Service Provider as storage and ware....
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....es, providing supply of Air, Water, Power, Nitrogen Gas etc. to BPCL in order to keep the tanks functioning. It is his submission that the agreement provides for the services to be rendered by the appellant to BPCL would in itself indicate that the appellant was service provided as storage and warehousing keeper. 5. Considered the submissions made at length by both sides and perused the records. The issue involved in this case is whether the appellant is providing services of storage and warehousing. It is not in dispute that the agreement entered by the appellant and BPCL starts as: "FIL shall make the Two FIL LFG Tanks and Associated Equipment described in Attachment 1 available to BPCL on license, on sole and exclusive dedicated basis ....
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....ex Jetty into FIL LPG Tank. All sub sequent operations, including safe storage of LPG in FIL LPG Tanks shall be BPCL's responsibility". (Emphasis Supplied) On the holistic reading of the entire agreement between BPCL and the appellant we find that the appellant had agreed to give on rent the entire facility of LPG storage tank with associated machinery to BPCL, for them to store and distribute LPG gas. We find that the agreement also specifically provides that the appellant will unload the LPG gas from the ship and transfer it to the LPG tanks as the pipeline and the machinery for unloading LPG from the ship and transfer, was erected and maintained by the appellant. 17. On this factual matrix we may read definition of storage and ware ho....