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Service tax on Imported Lease goods

Service Tax - Started By: - Chetan Pawar - Dated:- 24-8-2015 Last Replied Date:- 7-9-2015 - Dear All,We have import storage tanks on lease under Concessional rate of import duty when re-exported after use under Tariff custom notification No. 27/2002 [Cus] 1-3-2002. as we were paid the Custom duty under concessional rate. Every month the Party has given invoices in foreign currencies for lease/rent of this tanks and we have paid the same.So my question is the same transaction are liable to pay se .....

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t amount paid to your foreign service provider as per partial reverse charge notification no.30/2012-ST dated 20.06.2012 (S.No.10). As per the PPOS Rules, The place of provision of service is generally the location of the service receiver as per rule 3, which is your location, taxable territory and as per S.No.10 of notification, taxable service provided by the person located in the non-taxable territory and received in taxable territory, in such case, service recipient is liable for 100% servic .....

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and Control on the storage Tanks. Following judgment may be useful for you. Please check the material facts at your end. In case you need a written opinion then please do contact us. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) ST - Appellant manufacturing liquid gases - as customers do not have cryogenic tanks for storage, appellant leases same and charges rent - appellant also maintains such tanks - no ST payable under category of Storage services as appellant ha .....

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these tanks is monitored by the appellant. The appellant is paying Central Excise duty as well as VAT on the rent portion charged from the customers. Revenue is of the view that the rent charged by the appellant for leasing out the storage tanks to their customers fell under the category of Storage and Warehousing Services' as per Section 65(102) of the Finance Act, 1994.Proceedings were initiated and demands were confirmed. In one of the applications filed for stay, the CESTAT observed - 4. .....

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ies and stay recovery thereof during the pendency of the appeal. We reported this as INOX AIR PRODUCTS LTD Versus COMMISSIONER OF CENTRAL EXCISE. RAIGAD (2012 (12) TMI 38 - CESTAT, MUMBAI). A similar stay was granted in another matter of the same appellant relying upon the aforesaid decision. See INOX AIR PRODUCTS LTD Versus COMMISSIONER OF CENTRAL EXCISE (2014 (1) TMI 94 - CESTAT MUMBAI). The period involved is 16.8.2002 till March 2012. The appeals were heard recently. The appellant submitted .....

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ir control, they are not maintaining any inventory of the said goods therefore they are not liable to pay service tax under the category of Storage and Warehousing Services'. It is further submitted that as the appellant has taken into consideration the rent charge on storage tank in the assessable value of the excisable goods, therefore, double levy of duty cannot be imposed on them. Support is also taken of the decision in Indian Oil Corporation Ltd. vs. Commissioner of Central Excise, Goa .....

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ase, it is emerging that the gas in the storage tank installed at the place of buyer and the goods transferred to the buyer. Therefore, there is no control of the appellant on the goods in storage tank, after gas is stored in the tank the whole responsibility of the goods is with the buyer only. In these circumstances, as the appellant is not having any control over the goods and they are not responsible for the security of the goods, the appellant is not covered under the category of Storage an .....

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