Monday, June 11, 2012

SECTION 65(102) – STORAGE AND WAREHOUSING SERVICES


Management of records such as discharged cheques, vouchers, books of accounts for banks and corporate houses can not be considered as storage and warehousing of “Goods” and no Service Tax is leviable on same.

“Goods” as per section 2(7) of the Sale of Goods Act, 1930 is “to constitute goods, saleability is an essential criteria.”. Even in common parlance, it has been held in a number of judgements by the Supreme Court that goods are something which can come into market for being brought and sold.

The Supreme Court has also hled in case of R.D. Saxena V. Balram Prasad Sharma that case files maintained by a bank pertaining to their clients can not be equated with goods as they are nto saleable goods and they do not have marketability.

Commissioner of Service Tax, Mumbai V. P.N. Writer & Co. Ltd.  – CESTATE, MUMBAI BENCH.

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