TMI Blog2013 (2) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Goods Act implies that “Saleability” is a necessary condition to consider something as ‘goods’. Even in common parlance, it has been held in a number of judgments by the Hon’ble Apex Court that goods are something which can come into the market for being bought and sold. As decided in the case of in R.D. Saxena v. Balram Prasad Sharma [2000 (8) TMI 1001 - SUPREME COURT OF INDIA] files maintained by a bank pertaining to their clients cannot be equated with goods as they are not saleable goods and they do not have any marketability - Therefore, in the instant case also, the various old records such as discharged cheques, vouchers, books of accounts, in respect of which the service was rendered by the assessee to his clients such as ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot discharging any service tax liability. It was submitted by them that the said activity was undertaken by them for storage and retrieval of records of banks and corporate houses and the records consisted of discharged cheques, vouchers, agreements, books of accounts etc., which were not intended for sale and were not having any commercial value. The same were only maintained to comply with the statutory provisions for discharging any obligation/contract with customers for legal purposes. For rendering these services they raised bills on their clients towards (1) segregation, labelling and marking of records; (2) transportation of records; (3) storage of records at the premises; and (4) retrieval/recall services. 3. The department was of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thane I for adjudication. The same was adjudicated vide order-in-original V-Adj/SCN/15-46/2009 dated 17-3-2010 confirming the service tax demand of Rs. 3,21,11,343 classifying the service rendered by the appellant under storage and warehousing services along with interest thereon and also imposing a penalty under Sections 76 and 78 of the Finance Act, 1994. The appellants are before us against the said order. 5. The ld. advocate for the appellant submits that the provisions relating to storage and warehousing under Sections 65(102) and 65(105)(zza) of the Finance Act applies only in respect of goods as defined in the Sale of Goods Act, 1930. Section 2 of Sale of Goods Act, 1930 defines - goods means every kind of movable property other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax. Therefore, he prays for setting aside the order dated 26-5-2008 and upholding the order dated 17-3-2010 confirming the demand of service tax. 7. We have carefully considered the rival submissions. 7.1 The short question for consideration is whether the records such as discharged cheques, vouchers, deeds, agreements, books of accounts of banks and corporate houses would come under the category of goods as per the provisions of Section 2(7) of the Sale of Goods Act, 1930 or not. Section 65(102) of the Finance Act defines storage and warehousing as - storage and warehousing includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the case files maintained by a bank pertaining to their clients cannot be equated with goods as they are not saleable goods and they do not have any marketability. 7.3 In the said case, the respondent Bank retained the appellant (Advocate) to represent the bank in cases where the bank was a party. Later, the bank terminated the retainership and asked him to return all case files. The appellant advocate sent a bill for remuneration and informed the bank that the case files would be returned only after the dues were settled. The issue before the Hon ble Apex Court was whether the advocate had a lien on the litigation papers entrusted to him by his client. The appellant contended that he had a right of lien over the goods under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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