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2015 (9) TMI 417 - HC - Service TaxStorage and Warehouse Services - Levy of service tax on supervision charges paid to the Government - For the purpose of deputing staff for supervision of the work, the charges levied at 5% were levied under Section 28-A of Madhya Pradesh Excise Act, 1915 - charges in respect of storage of Foreign Liquor undertaken by the Liquor Contractor in the warehouse - Held that:- That being so, the activities of the staff appointed to supervise the work of the warehouse and the act of the State Government in appointing the supervisor does not fall within the purview of providing service by a service provider to a client. In view of the above, we see no error in the order passed by the Tribunal holding that the supervision in the warehouse undertaken by the State Government does not amount to ‘service’ and is not taxable under the head ‘Storage and Warehouse Services’. It does not fulfil the requirement of service as provided under Section 65(105)(zza) of the Finance Act, 1994 and is not included in the purview of the words ‘Storage and Warehouse Services’ - On the contrary, it is only a fees levied for the supervision undertaken by the State Government to ensure proper functioning of the warehouse and storage in accordance to the statutory requirement. - appeals dismissed - Decided against the revenue.
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