2017 (10) TMI 848

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....n terms of agreement with other public sector oil companies, they are also supplying imported LPG to other contracted oil companies and get storage rent of Rs. 800/- PMT for LPG. The Revenue entertained a view that the appellants have rendered a taxable service under the category of Clearing and Forwarding Agency (C&F) Service in terms of Section 65(25) read with Section 65(105)(j) of Finance Act, 1994. Accordingly, proceedings were initiated against the appellant to demand and recover service tax under the said category for the period 01/04/2002 onwards. The appellant discharged service tax on this consideration treating their activity as storage and warehousing service for the period effective from 15/08/2002. As such, the proceedings to ....

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....ubmitted that the original order clearly records that the appellant did make the agreement details available to the Department when they have applied for registration for service tax under storage and warehousing service in 2002 itself. The notice issued on 06/07/2005 covering the period April to August 2002 is clearly hit by limitation. There is no element of suppression, misdeclaration etc. on the part of the appellant. 4. The learned AR supported the findings of the lower authority. He submitted that though the goods were imported by the appellant, upon storage the further disposal is in terms of requests made by other oil companies. The original authority is correct in holding the appellant as agent of other oil companies. It is clea....

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.... principal and agent. 7. On perusal of the facts of the present case along with the statutory provisions as above will make it clear that the appellant has never acted as an agent of other oil companies. In fact the LPG as imported is owned by the appellant. He is selling some part of it as per the requirements of other oil companies. They are charging certain amount as a rent for storage and upkeep of this LPG. We find any such arrangement, there is no obligation of C&F agency work. In fact, the appellant is not preparing any documents on behalf of other oil companies for selling / clearing the LPG to any third party. We also rely on the decision of the Tribunal in the similar set of facts in the case of Cairn Energy (I) Pvt. Ltd. [2008....