TMI Blog2016 (12) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... orage area. C&F agent service - inclusion of reimbursement of expenses - Held that: - The normal activity of C&F agent is limited to arranging for despatch of the goods of the principal by engaging transport. However, the cost of transportation need not be borne by him. In the present case, the costs of transportation, when incurred by the assessee, have been reimbursed by principal. The value of taxable service in relation to clearing and forwarding operations is the gross amount charged for such services under Section 67. This has to be taken to mean the amount charged for providing the service. In the present case the service tax stands demanded on the total amount paid to the assessee by the principal. Clearly, there is no prescript ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne of ₹ 65,26,695/- under the category of storage and warehousing charges and ₹ 14,32,301/- under C F agent service covering the periods 2002-2003 to 2006-2007. After due process of adjudication, the Commissioner dropped the entire demand hence the Revenue is in appeal. 2. The Revenue's appeal is mainly on the following grounds. (i) The Commissioner has dropped the demand of service tax under storage and warehousing service. He has held that the assessee has rendered only the ca service of renting of immovable property and not and n storage of warehousing service. (ii) The service tax is leviable on the charges received by the as the assessee inasmuch as the same have been accounted under warehousing charges in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing the service. Any amount incurred by the agent and reimbursed by their principal at actuals cannot be included in the consideration for payment of service tax, He further relied on the following judgements which are in their favour. (i) Antony Garages Pvt Ltd. Vs. CCE- 2015 (38) STR 59 (Tri-Mumbai) (ii) Inox Air Products Ltd. Vs. CCE, Raigarh 2014 (36) STR 391 (Tri.-Mumbai) (iii) Shipping Corporation of India Ltd. Vs. CCE ST (LTU), Mumbai - 2014 (33) STR 552 (Tri. Mumbai) (iv) Finolex Industries Ltd. Vs. CCE, Pune - 2007 (7) STR 408 (Tris-Mumbai) 6. Storage and warehousing service - The storage and warehousing service falling under Section 65(102) of the Finance Act, 1994 was defined as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith various lessees shows the premises were let out on rent on per square foot basis and there is no mention of any goods to be stored by the lessees . There is no mention of any obligation of the Noticees towards the goods to be stored on the leased premises. The lessee was to bear the expenditure with respect to consumption of water and electricity on the leased premises. The lessee was to remain in exclusive possession of the leased premises during the period of lease. The relation between the Noticees and the persons who had taken the premises on rent was purely that of 'lessor' and the 'lessee'. The Noticees were nowhere put in position of the 'bailee' with respect to any goods. In short, the warehouses were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for ready reference: 9.2 It will be significant in this context to refer to the nature of operations undertaken by clearing and forwarding agents, as spelt out in paragraph 2.2 of Trade Notice No. 87/97 10/Service Tax/97 of the Madurai-2 Commissionerate dated 14, July 1997, in which it was observed that normally there was a contract between the principal and the clearing and forwarding agent detailing the terms and conditions and also indicating the commission or remuneration to which the C F agent is entitled. A clearing and forwarding agent normally undertakes the following :- (a) Receiving the goods from the factories or premises of the principal or his agents; (b) Warehousing these goods; (c) Receiving despatch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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