2019 (9) TMI 1376

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....aking 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 notice was issued to the appellant to demand service tax under the category of 'Renting of Immovable Property Service'. The show cause notice was 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 65 (105 (zza) of the F....

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....CI at all the time during the currency of agreement. c) The PSWC agree to get the stocks of FCI insured against the risk of flood, fire, theft and burglary during the currency of the contract, however no insurance would be obtained/arranged in the case of loss due to the natural calamities, natural disasters and civil commotion and earthquake etc. The instance cover against these risks would, however, be arranged by PSWC on the request of the FCI well in advance in accordance with the provisions of Punjab Warehouse Act, 1957 and Rules 1958 and payment of such charges shall be borne by the FC." 7. Further, we find that the letter issued by the District Manager of Punjab State Warehousing Corporation to the FCI. For better a....

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....6D (Negative list of services) of the Finance Act, 1994 relevant for the period w.e.f. 01.07.2012 wherein the services relating to agriculture or agricultural produce by way of renting of leasing of vacant land with incidental its use is exempted from payment of service tax, therefore, the appellant are not liable to pay service tax. Accordingly, the impugned order is set-aside and allow the appeal with consequential relief, if any. (Operative part of the order pronounced in the Court) ============= Document 1 -29- Pb. State Warehousing No PWC/DM/LDH/Tech/Resv.of Space/ To Subject: Sir, The Area Manager, Corpn., District Office: Ludhiana /09 Dated: celpt No... 15127 08/1/29 Food ....

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.... PSWC shall not pay any charges in any case on this account. That FCI shall be responsible for getting regularized any quantum of natural storage loss as the stocks are stored & dispatched in presence and supervision of FCI staff. PSWC shall not be responsible for any storage loss by natural cause except in case of giving proof byFCI of any defalcation by PSWC staff. 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 MT per stack. i.e f 162 MT Rice stocks are stored in each stack. Submitted for information with request to provide written acceptance of above ditions under intimation to co....

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....er bag of 50 kgs. per month with effect froin 1 April, 2009 for the year 2009-10 for the stocks kept under yearly reservation . As regards non-guaranteed charges, the existing policy will continue until further Orders. The above rates are for storage, preservation, maintenance, security etc. of FCI stocks by CWC in the godowns hired by FCI on yearly reservation basis and include insurance, weighinent, railway slding maintenance charges etc. as the elements have been considued in costing of storage charges by the Ministry. These rates may also be extraded to SWCs, where the godowns are at par in services , specifications and preservation of stocks, win that of CWC, which have to be verifi....