2024 (7) TMI 1739

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....ory of 'storage and warehousing service'. The appellant was also registered under the category of 'GTA service'. During the course of examination of ST-3 returns filed by the appellant for the period from April 2003 to March 2008, it was observed that the appellant had not paid appropriate service tax under the categories of 'storage and warehousing service' and 'GTA service'. 2. Accordingly, Show Cause Notice dated 17.03.2009 (including Corrigendum dated 22.07.2009) was issued, demanding total service tax of Rs.6,60,85,211/-. 2.1. The Notice was adjudicated vide the impugned Order-in-Original No. 01/ST/Commr/2010 dated 13.12.2010, wherein the Ld. Commissioner has confirmed the demand of service tax of Rs.6,60,85,211/-, along with int....

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....ce' is on the consignor or consignee of the goods, who pays the freight. In this case, FCI, IFFCO, etc., who are the consignor / consignee, are liable to pay Service Tax as they fall under one of the seven categories listed in Rule 2(1)(d)(v) and paid the freight. Thus, the appellant submits that they are not liable to pay service tax under the category of 'GTA service'. Accordingly, the appellant contends that the demand of service tax amounting to Rs.5,26,88,909/- [Rs.1,07,73,236/- and Rs.4,19,15,673/- (demanded vide corrigendum dated 22.07.2009 to the Show Cause Notice)] confirmed in the impugned order under the category of 'GTA service' is not sustainable. 4.2. The appellant further submitted that the impugned order has confirmed the....

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....age of agricultural produce is specifically excluded from the purview of 'storage and warehousing service'. In this case, the appellant has rendered the service of storage of 'food grains', which are agricultural products specifically excluded from the scope of the definition of 'storage and warehousing service'. Therefore, we hold that the demand of service tax amounting to Rs.1,33,96,302/- confirmed in the impugned order under the category of 'storage and warehousing service' is not sustainable and accordingly, we set aside the same. 7.2.1. Regarding the demand of service tax under the category of 'GTA service', the appellant submits that as per Rule 2(1)(d)(v) of the Service Tax Rules, the consignor or consignee who pays the freight i....

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....lant, as per the agreement, the responsibility to pay the freight falls on the depositor / consignee. The relevant clause of the "Standard storage Terms & Conditions", as submitted by the appellant, is extracted below: - "Standard storage Terms & Condition of Bihar State Warehousing Corporation. ... ... ... 3. Handling & Transportation: .... 3.3 The depositors shall pay Transport Handling charges at the rate fixed irrespective of operations by BSWC from time to time. The operations wise transport handling would comprises unloading from wagon, loading into trucks, unloading from trucks and directly loading into trucks, unloading from trucks stacking in godowns and transportation ....