TaxTMI 
TaxTMI 
2019 (1) TMI 441
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....ss as Container Freight Station (CFS). 2.2 Brief facts as recorded in the Order-in-Original are that the goods which are imported by the containers are stored in the Bonded Warehouse (both open and closed) where de-stuffing of cargo is done and customs examinations are carried out. Wherever the imported goods are not cleared immediately by the importers on reaching the CFS, such goods are de-stuffed and kept in the custody of the warehouse keeper. Sometimes, the goods which were not taken delivery by the importers within the normal period of warehousing are treated as abandoned goods. Such goods are auctioned after following the prescribed procedure. Out of the proceedings of the auction, the fee for the auctioneer and the customs duty are....
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....who is said to have received such service. In the absence of service receiver, the question of payment of service tax would not arise. I find force in their argument." 2.5 He also referred to the Board Circular F. No. B11/1/2002-TRU dated 01.08.2002 and concluded that even though the assessee was not the owner of the goods, still the transfer had taken place during auction and hence, the same has to be treated as "sale" and not a service and thus there was no liability to service tax. Aggrieved, the Revenue is before this forum. 3. Today when the matter came up for hearing. Ld. DC (AR) Ms. T. Usha Devi appearing on behalf of the Revenue submitted that the assessee renders the services of CHA as also Storage and Warehousing and when the i....
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.... of the Mumbai Bench in the case of Speedy Multimodes Ltd.(supra) which are relevant, read as under : "5. We have carefully considered the submissions made by both the sides. 6. We find that service tax was proposed to be demanded on the sale proceed of the auction of the abandoned imported goods. In the whole transaction, no service recipient is existing, therefore there is no question of providing any service to any person. Merely for the reason that Section 150 provides for distribution of the amount of proceed of auction that will not empowered the department to recover service tax on the auction proceeds. The ld. Commissioner with proper application of mind given detailed finding not only on the facts but also on the law point of Se....
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....re is no dispute that the sole association of the appellants with such goods is through the services of storage and warehousing services provided by them to the importer/depositor of the goods. The process of recovery of storage and warehousing charges through auction of uncleared cargo takes place as a consequence to the non-payment of charges of the storage and warehousing provided by CFS. In such a situation there are two transactions taking place concurrently, i.e., (i) the warehousing of the goods of the depositor (importer) in the CFS and (ii) sale of uncleared goods to the (new) buyer by way of auction by the CFS. Section 48 of the Customs Act, 1962 prescribe the procedure in the case of goods not cleared, warehoused, or transship....
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....ived is without the element of cost of storage and warehousing charges. A sale invoice is generated on the bidder and the goods are delivered after he has paid the full value of the bid amount along with the Sales Tax due thereon. The money realized from the bidder loses the character of a 'storage and warehousing service' and acquires the status of sale proceeds and becomes subject to Sales Tax. It is for the appellants (custodian of the goods) to apportion the sale proceeds to the respective components as per the order of priority stipulated under Customs Act. Therefore, the surplus amount retained by the appellants, for statutory disbursement to the owner of the goods is not in the nature of 'storage and warehousing service' and as menti....