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TMI Blog2008 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... der-in-appeal passed by CCE (Appeals), Chandigarh. 1.1 The appellants in the appeal No. 132-136/06 and 512/07 are required to maintain, as per the orders of the Ministry of Consumer Affairs, Government of India, certain stock of free sale sugar for a specified period and the Appellant cost of storage, insurance and interest on the stock is reimbursed by the Government in form of subsidy. On expiry of the specified storage period, the appellant sugar mills are free to sell the sugar to whomsoever they want. The Revenue is of the view that manufacturing the stock of a specified quantity of free sale sugar by the appellant sugar mills for a specified period as per the orders of the Ministry of Consumer Affairs, Government of India, the expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t sugar mills would attract service tax under Section 66 of the Act. 2. Heard both the sides. 2.1 Shri Vikrant Kachria, Adovcate, the learned counsel on behalf of the appellant sugar mills, made the following submissions :- (1) The Government of India, in order to maintain a buffer stock of sugar has directed the sugar mills to maintain stock of a specified quantity of free sale sugar for a specified period for which the sugar mills, are compensated by reimbursement of expenses towards interest, warehousing and insurance. The appellant sugar mills, therefore, have not provided the "storage and warehouse service" to the Government. (2) The maintenance of buffer stock of sugar as per the direction of the Government of India is a statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be said to have provided "storage and warehousing service". (4) These exist no ground to hold that the appellant sugar mills deliberately concealed on suppressed material facts from the Revenue with mala fide intention, thereby justifying application of extended period of limitation and liability to penalty and interest. 2.2 Shri Amit Jain, the learned Departmental Representative emphasized that - (a) The storing of a specified quantity of free sale sugar for a specified period by the appellant mills, as per the Government of India orders, and for which they have paid a compensation in form of subsidy, is covered by the definition of "taxable service" in relation to storage and warehousing of goods, as given in Section 65 (105) (zza) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods during the period of storage remains with the appellant sugar mills, and on issue of release order from the Government, the Mills are free to sell the sugar to whomsoever they want. 3.1 As per the provision of Section 65 (105) (zza), "taxable service" in relation to storage and warehousing means any service provides or to be provided to any person, by a storage or warehouse keeper in relation to storage and warehousing of the goods. 3.1.1. As per Section 65 (102) "Storage and warehousing includes storage and warehousing service if goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage." 3.1.2. Section 66 is the charging secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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