TMI Blog2014 (8) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... ing rentals calculated from the date of bill of lading ex-Dubai till the date of bill of lading ex-Mumbai towards the shipment of empty container from Mumbai towards the shipment of empty container from Mumbai to New York. - the exporter has no control over the tanks. Circular dated 1.8.2002 clarified regarding the scope of warehousing service. - It has been clarified that mere renting of space cannot be said to be in the nature of service provided for storage and warehousing of goods. Essential test is whether the storage keeper provides for security of goods, stacking, loading/unloading of the goods in the storage area. - the exporter of helium cannot be held to be a storage and warehouse keeper as he has no control over the tanks. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id helium. The helium is imported into India in the tanks. The same is transported to the factory and is used in the manufacture of their final product. The tank is thereafter re-exported. The ownership of the tanks remains with the exporter and the possession and effective control of the tank is with the appellants as per the terms of the purchase order. The appellants also undertook essential activities like unloading and keeping a stock of the helium stored in the tank. 4. The contention is that such activity cannot be termed as 'storage and warehousing service' as provided under Section 65(102) of the Finance Act. The appellants relied upon the provisions of Section 65(105)(zza) of the Finance Act to submit that the taxable s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the helium. In these circumstances, the appellants are liable to pay service tax on reverse charge mechanism. 7. The Revenue also submitted that the appellants are paying consideration for the use of the tanks. The appellants are also separately paying for helium and separately paying the rent of the storage tanks to the exporter of the helium. As the appellants are separately paying consideration amount in respect of storage and helium in the tanks and the same is imported into India and the tanks are further kept in the factory, therefore, the appellants are liable to pay service tax as recipient of storage and warehousing service provided by the foreign service provider. 8. We find that in the present case, the demands are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty etc. A point has been raised as to whether service tax would be leviable in such cases. It is clarified that mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods. Essential test is whether the storage keeper provides for security of goods, stacking, loading/unloading of goods in the storage area. 10. In the present case, admitted facts are that the appellants are importing helium in the tanks. As the helium is to be stored at extremely low temperature i.e. 269 0 C hence the same is imported and transported in vacuum insulated tanks. Admittedly, the appellants are paying rent in respect of the insulated tanks in which helium is imported. The appellants are paying rentals ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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