2018 (8) TMI 1285

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....i and related by-products. In additions to the above, appellants had been appointed as custodian of imported edible oils under Customs Act, 1962 and had rented/leased out their storage tanks in Kakinada for storage of the imported edible oils to those importers who availed the facility of storing imported oils in these storage tanks. By agreement dated 01.08.2002 and 31.07.2004, appellant appointed M/s Adept Agencies Ltd (AAL) to provide cargo handling services in the storage area directly to the users/importers using the tanks at storage terminal located at Kakinada as well as different ports/places. Appellant were paid a fixed sum by M/s AAL in terms of the agreement. Lower authorities were of the view that the appellant is required to di....

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.... authority had only relied upon the fact that appellant is a custodian of goods under Customs Act and has to provide security of the goods stored in such tanks, hence, fall under 'storage and warehousing services', while totally ignoring the fact that other co-related work which is required under definition of 'storage and warehousing services' is not done by the appellant. He would submit that the reliance placed on the Board circular dated 01.08.2002 is correct and because they are undertaking responsibility of safe custody of goods does not mean that they are rendering any services which would get covered under 'storage and warehousing services'. He would rely upon the decision of the Tribunal in the case of Finolex Industries Ltd [2007 ....

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..../s AAL. 6. The appellant herein has stated that the amounts collected by them are nothing but rental charges as per the agreement entered with M/s AAL in support of which agreements were produced and invoices raised by appellant on M/s AAL were also produced. It was also pointed out from the statement of Senior Manager of the appellant as to the exact functioning of the entire storage activity. 7. It is seen from the records, the agreement entered by appellant with M/s AAL specifically considers about the loading and unloading of cargo, pumping the cargo to storage tanks, heating the cargo, if required, making deliveries of the cargo, weighment of cargo, loading of cargo into tankers/railway rakes, keeping records of the cargo, delive....

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....ualify for taxing under 'storage and warehousing services'. We refer to the clarification given by the Board on this point in circular dated 01.08.2002 which we reproduce. "3. Storage and warehousing service for all kinds of goods are provided by public warehouses, private warehouses, by agencies such as the Central Ware Housing corporation, Air Port Authorities, Railways, Inland Container Deport, Container Freight Stations, storage godown and tankers operated by private individuals etc. The storage and warehousing service provider normally make arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provide insurance cover etc. Servi....