The case involves a dispute over service tax liability on the ...
CESTAT Mumbai held appellant liable for service tax on retained amount from unclaimed goods sale proceeds. Upheld Commissioner's order following precedent.
Case Laws Service Tax
May 22, 2024
The case involves a dispute over service tax liability on the amount retained by the appellant from the sale proceeds of unclaimed imported goods. The appellant, an operator of a container freight station and custodian of goods, paid service tax under protest for the period February 2004 to 17.07.2008. The appellant argued that no service was provided for the auction surplus of abandoned cargo. The tribunal considered the precedent decision in the appellant's own case, which favored the appellant on the same issue for an earlier period. However, changes in the law post-2011 and the distinction between charges for storage and warehousing services and auction proceeds of abandoned goods were noted. The appellant's reliance on a previous tribunal decision regarding CENVAT credit on services used for auction of abandoned goods was also discussed. The tribunal found that the appellant was liable to pay service tax on storage and warehousing services for the disputed period.
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