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2019 (8) TMI 1802 - APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANATaxability - lien or mortgage charges and stock transfer fees received by the applicant from the service receiver - taxable under Section 9 of Central Goods and Services Tax Act, 2017 and Section 9 of Haryana Goods and Services Tax Act, 2017 or exempt under Section 11 of Central Goods and Services Tax Act, 2017 and Section 11 of Haryana Goods and Services Tax Act, 2017 with respect to both agricultural and non-agricultural produce stored and, warehoused in the warehouses of the applicant - HELD THAT:- Sub-section 4 (1) of the Warehousing (Development and Regulation) Act, 2007 provides that any person desirous of commencing or carrying on the business of maintaining a warehouse issuing negotiable warehouse receipts may make an application to the Authority for registration in respect of one or more warehouses owned or occupied by him. Further, section 2 (m) of the said act provides that “negotiable warehouse receipt” means a warehouse receipt under which the goods represented therein are deliverable to the depositor or order, the endorsement of which has the effect of transfer of goods represented thereby and the endorsee for which takes a good title. As per second proviso to section 3 of the said Act, no such registration shall be required for warehouses which do not propose to issue negotiable warehouse receipt. Therefore, even if a warehouse operator is not issuing any negotiable warehouse receipts and is not registered under the Warehousing (Development and Regulation) Act, 2007, the other services provided by him (i.e. other than lien or mortgage charges and stock transfer fees) shall qualify as warehousing services. Therefore, for any service to qualify as warehousing services it is not imperative that negotiable warehousing receipts must have been issued for them. Therefore, scope of storage or warehousing services cannot be expanded to unlimited extent. Only the services similar to the services mentioned in the entry can be construed as included therein. Thus, it is clear that the lien or mortgage charges and stock transfer fees received by the applicant from the service receiver are taxable under Section 9 of Central Goods and Services Tax Act, 2017 and Section 9 of Haryana Goods and Services Tax Act, 2017 and do not fall in exemption category as provided in entry no, 54 of the Notification dated 30th June, 2017 of the Haryana Government Excise and Taxation Department - the Advance Ruling does not suffer from any infirmity or illegality and the same is upheld.
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