TaxTMI 
TaxTMI 
2016 (12) TMI 98
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....uthority giving detailed finding which is based on various judgments and Boards clarification on the specific issue involved in the present case, dropped the proceedings therefore the Revenue has filed this appeal. 2. Shri A.B. Kulgod, Ld. Assistant Commissioner (A.R.) appearing on behalf of the Revenue reiterates the grounds of appeal. He further submits that there is no dispute that the appellant has engaged in providing storage and warehousing service. Even though the proceed is towards auction of the unclaimed cargo but the purpose for auctioning the goods and recovery of the amount is to compensate the warehousing storage charges. Therefore the amount received by auction of unclaimed cargo is nothing but the service charges against providing of storage and warehousing service, therefore the same is legally taxable. 3. Shri Arun H. Mehta, Ld. Counsel for the respondent along with Shri Mayur Kadam, Advocate submits that the issue is of no more res-integara as the same is clearly clarified by the Board that the proceed of auction cannot be considered as service charges, therefore the same cannot be levied service tax. He submits that the issue is covered by the judgment of thi....
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....he charges of the warehouse for the safe storage of the goods, the warehouse keeper (the Noticees) disposes of the uncleared cargounder Section 48 of the Customs Act. 1962 through the process of auction In accordance with the procedure specified in Section 150 of the Customs Act. 1962, to recover their dues in respect or storage and warehousing. The intention of this Notice is to demand the Service tax on the amount accrued to the Noticees on account of auction of the unclaimed cargo. 8.3 M/s GD were authorized by M/s PSCWC to take physical possession of the M/s PSCWC with effect from 1,1 February. 2007 to operate the Container Freight Station(CFS). Bill & Receive Payments in the name 01' Punjab Con ware in their capacity as O&M contractor. It was therefore alleged that. M/s PSCWC during the period April- 2004 to November-2006 and M/s un during the period from February-2007 till March-2009 had contravened the provisions of Section 68 & 70 of Chapter V of the Finance Act. 1994 (32 of 1994) read with Rules 5.6 & 7 of Service Tax Rules.,1994. 9.1 The main allegation against the Noticees is that the excess amount recovered over & above the storage & warehousing charges was ret....
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....he guidelines. such retained amount on auction sale of abandoned cargo is to be retained as a liability for a period of 3 years pending appropriation against any future dues from Customs & claims from depositors and only thereafter it is to be treated as income under "miscellaneous receipts". There is strength in the contention of the Noticee that. the retained (surplus) amount does not carry the meaning of Taxable Warehousing Charges income on the ground that the retained amount is lying as liability and not taken as income into the books of account. Further. as per Government Circular F.No.B/11/1/12000/TRU dated 18.02.02 which while interpreting the storage & warehousing service, provides that the service provider normally make arrangement of space to keep the goods, loading, unloading and stacking of goods in storage area. keep inventory of goods, make security arrangement & provide insurance cover etc. but in the case of retained (surplus) amount no such arrangement is made. It is the contention of the Noticees that the surplus amount has simply resulted through efforts of auctioneer & competition in bid auction. 10.2 As per Section 150 of the Customs Act. 1962. proceeds fro....
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....s Tax due thereon. I agree with the contention of the Noticees that there is no privity of service contract between Noticees and the bidder. except that of purchase and sale of goods. It is contended by the Noticees that at no stage during the bidding process. does the bidder specify the bid value as comprising of any components, such as auction expenses, freight. Customs Duty, Custodian charges etc. It has also been submitted that such appropriation out of such sale proceeds. is made by the Noticees as per the provision of the Customs Act. 10.4 The process of such appropriation to the various components. as stipulated under the Act, priority thereof is also laid down therein. Thereby, the amount realized during process of sale of particular item of abandoned goods may not be sufficient to meet all the components as listed in the Act. The custodian has the last priority and very often the value realized on sale of unclaimed/abandoned goods is insufficient even to meet the prior charges. The custodian (the Noticees) has to consequently treat the unrealized amount of its dues, at irrecoverable loss. It thus becomes a matter of chance that the sale proceeds after meeting all prior ....
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.... he gathered from the language of the provisions particularly where the language is plain and unambiguous. In a taxing Act it is not possible to assume any intention or governing purpose of the statute more than what is stated in the plain language. It is not the economic results sought to he obtained by making the provision which is relevant ill interpreting a fiscal statute. Equally impermissible is an interpretation which does not from follow the plain unambiguous language of' the statute. Word; cannot he added to or substituted so as 10 give a meaning the statute which will serve the spirit and intention of the legislature. The statute should clearly +and unambiguously convey the three components of the tax law i.e. the subject of the tax, the person who is liable to pay the tux and the rate at which the tax is to be paid. If there is any ambiguity F regarding any of these ingredients in a taxation statute then there is no tax in law'. Then it is [or the legislature to do the needful in [he matter." 11.3 Thus it can be seen that the Hon'ble Apex Court has laid down framework of interpretation of the 'statute' in an unambiguous manner. The Hon'ble apex Court h....