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2018 (8) TMI 954 - AT - Service TaxStorage and Warehousing Service - renting out of storage tanks - whether the amounts received by the respondents from M/s. Adept agencies Pvt. Ltd. should suffer service tax and as to whether the respondents are performing any such storage and warehousing services to the customers through M/s. Adept Agencies on a principal to agent basis? Held that:- The agreement nowhere mentions that M/s. Adept Agencies Pvt. Ltd. shall render the services listed therein as agents of the respondents. Going by the nature of the agreement it is clearly seen that the agreement is on a principal to principal basis - Going by the nature of the agreement it is clearly seen that the agreement is on a principal to principal basis. As observed by the learned Commissioner (Appeals), M/s. Adept Agencies Pvt. Ltd. is dealing with users of storage and warehousing infrastructure of the respondent directly and collecting service charges on their own account and also paying service tax on the same. M/s. Adept Agency is an independent and unrelated organization dealing with respondents and users on a principal to principal basis. A analogy can be drawn at this juncture of a mandap keeper who provides space for conducting marriages, functions, parties etc; should clients require any catering services for such ceremony there is normally a designated colour for the mandap and the client can avail his services - the respondents cannot be asked to pay service tax under the category of "Storage and Warehousing Service". Time Limitation - Held that:- A show-cause notice has been issued on 11.05.2005 clearly beyond the normal period - As the Department was having knowledge of the agreement between respondents and the Adept Agencies Pvt. Ltd as early as 21.11.2002, issuance of show-cause notice for extended period that too solely based upon the agreement between the respondents and M/s. Adept Agencies is not acceptable - issue is barred by limitation. Appeal dismissed - decided against Revenue.
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