TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 154
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....pellant is an undertaking of the Government of Punjab and owner of warehouses which have been rented by them to the Food Corporation of India for storage of food grains. The case of the department is that the activity of letting out warehouses to FCI would attract service tax under section 65 (105 (zzzz) of the Finance Act, 1994 as renting of immovable property for business or commerce. On these allegations, the show cause notices were issued to the appellants to demand service tax under the category of renting immovable of property service. The show cause notices were contested by the appellant on the ground that the activity undertaken by the appellant is appropriately fall under the category of storage and warehousing in terms of Section....
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....ctivity undertaken by the appellant is appropriately fall under the category of renting of immovable property service in terms of section 65 (105 (zzzz) of the Finance Act, 1994. 5. Heard the parties and considered the submissions. 6. We have gone through the terms of agreement. The para 2 of the terms of agreement is reproduced below: "2. a) The PSWC agree to offer owned/hired/ godown capacity on rental basis to FCI on demand at various stations in the State of Punjab on General Hiring basis (GHB) on year to year guarantee utilization, further extendable on year to year basis with mutual consent. b) The PSWC agree to keep the godowns storage worthy and ready for acceptance of the stocks of FCI at all the time during....
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....te, therefore, the appellant is not liable to pay service tax on Storage and Warehousing which has been exempted from service tax as per section 65 (105) zza) of the Finance Act, 1994. 10. In view of the above, the appellant is not required to pay service tax on their activity. Accordingly, we set aside the impugned order and allow the appeals with consequential relief. ( Dictated and pronounced in the court ) ============= Document 1 Pb. State Warehousing No PWC/DM/LDH/Tech/Resv.of Space/ To The Area Manager, Corpo.. District Office Ludhiana 709 Dated Scelpt No..... 2811/99 Subject: Sir, Food Corporation of India. Ludhiana, Nama of Branch Storage of FCI Rice in PSWC godowns -Reg....
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....orage loss as the stocks are stored & dispatched in presence and supervision of PCI staff. PSWC shall not he responsible for any storage loss by natural cause except in case of giving proof b.FC of any defalcation by PSWC sut That FCI shall pay storage charges scheduled rate (any revision of the storage charges shall be applicable) of over & above stocks stored beyond the limit of 150 4T per stack 162 MT Rice steeks are stored in each stuck. Submitted for information with request to provide written acceptance of above ditions under intimation to concerned FCI staff so that FCI Rice stocks may be accepted for WC godowns & to avoid complications later on about this issue. It is made clear that if FCI ....