TMI Blog2020 (8) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provides insurance cover etc. In a case where a person only rents the storage premises, he does not provide any service such as loading / unloading, stacking, security etc. Mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods. The Appellant has referred to a clarification given by the Commissioner Service Tax to the effect that the storage of food grains would not attract service tax - Since we are considering the nature of the service supplied by CWC, the clarification given by the Commissioner Service Tax to the Appellant has no relevance. The service supplied by CWC to the Appellant is renting of immovable property. The amount of rent paid by the Appellant to CWC is taxable at the hands of CWC under the category Rental or leasing services involving own or leased non-residential property (Service Accounting Code - 997212) - decision of AAR upheld. - KAR/AAAR/Appeal-14-I/2019-20 - - - Dated:- 28-2-2020 - SHRI. D.P. NAGENDRA KUMAR, AND SHRI. M.S. SRIKAR, MEMBER Represented by: Shri. Piyu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oil, etc? 5. The Karnataka Authority for Advance Ruling vide ruling No KAR ADRG NO 112/2019 dated 30-09-2019 = 2019 (10) TMI 799 - AUTHORITY FOR ADVANCE RULING, KARNATAKA held as follows: The services provided by the Central Warehousing Corporation to the applicant are covered under renting of commercial space in immovable property and not storage service of goods. The said service is covered under SAC 997212 is liable to CGST of 9% under entry no.16 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017. The said service is also liable to a tax of 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no. 16 of Notification (11/2017) No. FD 48 CSL 2017 dated 28.06.2017. 6. Aggrieved by the said ruling, the appellant has filed this appeal on the following grounds. 6.1. The Central Warehousing Corporation is created under the Warehousing Corporation Act, 1962 with the objective to provide storage space for storage of food grains and other notified commodities under the Act; that the authorisation agreement between the CWC and the Appellant is primarily for the use of storage space at Belgaum on dedicated warehousing for which a consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. Piyush Jain, Advocate who reiterated the submissions made in the grounds of appeal. He also drew attention to the Memorandum of Association of Karnataka Food and Civil Supplies Corporation Ltd wherein storage of food grains is one of the objectives of the Company. DISCUSSIONS AND FINDINGS 8. We have gone through the records of the case and considered the submissions made by the Appellant in their grounds of appeal as well as at the time of personal hearing. We find that this is an appeal filed by the Appellant as a recipient of the service rendered by CWC. They had sought an advance ruling on the applicability of GST on the service provided to them by CWC in terms of the authorisation agreement. The advance ruling was not sought on the supplies made by the applicant but rather on the supplies received by them. Section 95(a) of CGST Act defines advance ruling as follows: (a) advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or Sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dities belonging to the applicant or its clients. Accordingly, CWC has agreed to provide the storage space of 488 sq metres at Central Warehouse, Belgaum for a period of five years from 20.06.2015 and the rate of storage charges shall be ₹ 126 per sq metre per month or part thereof on gross area basis. The service tax as applicable from time to time shall be payable extra by the Appellant. The Appellant shall make their own arrangements for comprehensive insurance of stocks stored and the CWC shall not be responsible to make good any losses or damages to goods. The Appellant is required to take all clearances / permissions for storing the goods from the concerned authorities and CWC will not be responsible for the same. The Appellant is allowed to maintain their own stock accounting of the goods stored in the godown on dedicated warehousing basis. The Appellant is also allowed to deploy their own security personnel for storage space allotted subject to overall discipline and control of the Warehouse manager CWC, Belgaum. The Appellant will allow the CWC officials or its authorized representatives for inspection of the godown premises at any time. The CWC, based on the request ..... X X X X Extracts X X X X X X X X Extracts X X X X
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