TMI Blog2015 (10) TMI 2655X X X X Extracts X X X X X X X X Extracts X X X X ..... cargo also and the said clarification can be applied to the instant case since no warehousing service can be said to have been rendered. The auction charges adjusted towards warehousing charges cannot be considered as receipt of any services and hence not liable to demand of service tax. Appeal dismissed - decided against Revenue. - ST/103/12-MUM - A/3680/15/STB - Dated:- 13-10-2015 - P. S. Pruthi (Technical Member) And Ramesh Nair (Judicial Member) For the Appellants : R. K. Das, D. C. (A.R.) For the Respondent : Girish Raman, C. A. ORDER Ramesh Nair (Judicial Member) This appeal filed by Revenue is directed against Order-in-Appeal No. US/432/RGD/2011 dtd. 28/11/2011 passed by the Commissioner of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and service recipient. Therefore the sale proceed of auction of abandoned goods is not proceed towards providing any service to any service recipient therefore the same is not chargeable to the service tax. He further submits that Ld. Commissioner (Appeals) has rightly dropped the demand relying on the Board Instruction F. No. D 11/1/2002-TRU dated 1/8/2002 wherein it was clarified that no cargo handling service said to have been rendered in case of abandoned cargo, therefore service tax is not leviable. 5. We have carefully considered the submissions made by both the sides. 6. We find that service tax was proposed to be demanded on the sale proceed of the auction of the abandoned imported goods. In the whole transaction no service re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... go, after paying the customs duty and other expenses, is gross amount accruing to the appellants in lieu of the storage and warehousing services provided by the appellants in respect of such imported goods. It is indeed a fact that auctioning of uncleared cargo is part of the business activity of running a CFS and selling of such uncleared goods is not their separate business activity. Therefore, there is no dispute that the sole association of the appellants with such goods is through the services of storage and warehousing services provided by them to the importer/depositor of the goods. The process of recovery of storage and warehousing charges through auction of uncleared cargo takes place as a consequence to the non-payment of charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the taxable service. In this case, on completion of auction and consequent to sale of such goods, the title of the goods passes to the successful bidder, who has not received any service on account of storage and warehousing of such goods rather the successful bidder receives the ownership of goods. The auction of the said goods is carried out purely on a commercial basis and the consideration received is without the element of cost of storage and warehousing charges. A sale invoice is generated on the bidder and the goods are delivered after he has paid the full value of the bid amount along with the Sales Tax due thereon. The money realized from the bidder loses the character of a storage and warehousing service and acquires the status o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce can be said to have been rendered in case of abandoned cargo, therefore, service tax is not leviable. Since cargo handling is precursor to the warehousing, the Circular can be logically applied to he warehousing of abandoned cargo also and the said clarification can be applied to the instant case since no warehousing service can be said to have been rendered. I also place reliance on Tribunals decision in the case of M/s. India Gateway Terminal (P) Ltd. v/s. CCE 2010 (20) STR 338 (Tri.-Bangalore) wherein it was held that auction of goods not cleared by importers is not covered under Port Services. It was held that the auction charges adjusted by port authorities towards port charges cannot be considered as receipt towards any service. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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