News Flash
  • CGST Rules, 2017 as amended up to 18.07.2019 have been uploaded.
  • Notifications issued to carry out changes in CGST Rules, 2017 and to extend the last date for furnishing FORM GST CMP-08.
  • Circulars regarding doubts related to ITeS Services; and goods taken out of India for exhibition or on consignment basis issued.
  • Cash award date extension of Scheme for grant of Cash Awards to meritourious children of Departmental officers/ staff for their performance in the 10th/ 12th standard Board Examinations held in March/ April, 2016,2017 and 2018Click Here
  • To decide eligibility of candidates appearing for Departmental Exams to be conducted by NACIN in 2019-2020, CCAs may refer Recruitment Rules and Annual Examination Calendar 2019-2020. This clarification can be viewed through this linkClick Here
  • Circular for Creation of User Id for WCO e-learning module 'CLiKC' Click Here
  • Verification of Options (for information purpose only) for the candidates selected through Steno Grade- II Examination 2017 - Click here Click Here
  • Circular 102/21/2019-GST slightly amended to rectify an inadvertent error.
  • One-day Workshop/training on "Capacity building on GeM Procurement" along with Corrigendum on 29.07.2019 at NACIN, Faridabad - reg.Click Here
  • Four-Days' Refresher Training on GST for Group 'A' officers of CBIC, to be conducted from 30th July to 2nd August, 2019 at NACIN, Faridabad.Click Here
  • Calling of Nomination for UNODC E- learning Programme Click Here
  • Calling for willingness for the post of (1) Sr.P.S (2) Inspector and (3) Executive Assistant in NACIN, Chennai on deputation basis..- Please click here
  • Postponement of Two Days Training on "3-Is (Intelligence, Information & Investigation)" at NACIN, Faridabad from 11-12 July, 2019 to 22-23 July,2019.-Click here
  • One-Day Training on "Authorized Economic Operator (AEO) Scheme" for Group 'A' and Group 'B' Officers of CBIC on 19th July, 2019 at NACIN, Faridabad.-Click here
  • Second press release for clarification on annual return and reconciliation statement issued.
  • Call for information from all Commissionerates and Directorates for Lok Sabha Un-starred Question regarding "Internal Complaints Committee".-Click here
  • Corrigendum to Result of Customs Broker Examination -Click here
  • CBIC has enabled Central Excise and Service Tax Duties payment collection from ICEGATE via NEFT/RTGS. The payment module can be accessed from www.cbicpay.icegate.gov.in. .Please click here for detailed advisory.
  • Updated versions of GST - Concept and Status, and GST - An Update as on 01/07/2019 have been uploaded.
  • GST MSMEs Booklet released by Hon'ble FM-Click here
  • CGST Rules, 2017 as amended up to 28.06.2019 have been uploaded
  • Circular 97/16/2019-GST amended to extend the last date forfilingofintimation for availing the alternative Composition scheme for suppliers of services to 31.07.2019.
  • Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange - reg.-Click here
  • Removal of Difficulty Order issued to extend the due date for furnishing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till 31st August, 2019.
  • Corrigendum - Cadre re-organisation of field formations under CBIC - allocation of revised cadre strength-Click here
  • List of officers to be given Commendation Certificate on 2nd GST Day to be celebrated on 1st July, 2019-Click here
  • Calling of nomination for Training on Drug Law Enforcement,identified in APR 2016-17,to be conducted at NACIN Faridabad on 18-19 July, 2019 -Click here
  • The Departmental exam for promotion of Tax Assistants (TA) to the grade of Executive Assistants (EA) in Customs and Central Tax Depts will be held from 16th to 18th September 2019 . The relevant circulars and Syllabus can be viewed through this link. -Click here
View all

Section 37 B Order No.2/1/2002-ST

F.No.137/04/2002 CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

24th April, 2002.

37 B Order No.2/1/2002-ST

Subject:- Providing service of storage facility and charging rent for Storage of liquid cargo in tanks - whether liable to service tax as C&F Agents, - regarding.

      In exercise of the powers conferred under Section 37 B of the Central Excise Act, 1994 (as made applicable to Service Tax by Section 83 of the Finance Act,1994), the Central Board of Excise & Customs considers it necessary, for the purposes of uniformity in connection with classification of services, to issue the following instructions.

2.      Doubts have been raised as to whether service of storage facility and charging rent for storage of liquid cargo in tanks, provided by certain agencies, can be considered as a service provided by 'clearing and forwarding agents' or not.

3.      This matter was raised by four such agencies before the Mumbai High Court in Writ Petition Nos.170/2002, 171/2002, 2962/2001 & 2994/2001. The petitions were disposed of by Hon'ble Court with directions to the Central Board of Excise & Customs to pass appropriate speaking clarification and/or, orders after hearing the petitioners.

4.      The agencies were accordingly heard in the matter on 19th March, 2002 and on 3rd April.

5.      Views of DGST and concerned Commissioners of Central Excise have also been obtained.

6.      It is observed that the above agencies are engaged in the activity of providing storage (tanks) facility for liquid cargo which has been imported or is intended for export. They charge rent for storage of liquid cargo deposited with them.

7.      It is observed that, as per Section 65 of Finance Act, 1994 'Clearing & Forwarding Agent' means "any person who is engaged in providing any service, either directly or indirectly connected with the clearing and forwarding operations in any manner to any other persons and includes a consignment Agent". Further, 'taxable service' with respect to C&F Agents means, any service provided to a client by a clearing and forwarding agent in relation to clearing and forwarding operations, in any manner.

8.      The issue is whether the activity/service of providing storage facility and charging rent, for storage of liquid cargo in tanks, can fall under the category of 'Clearing and Forwarding' operations as defined under Section 65 of Finance Act, 1994.

9.      The main point raised by the agencies is that they are not at all rendering any clearing and forwarding services and hence they do not come under the category of clearing and forwarding agents. They simply issue Invoices/Bills to their customers towards storage charges only and for no other charges.

10.      The matter has been examined. Normally, a C&F agent receives goods from the factories or premises of the Principal or his agents, stores these goods, despatches these goods as per orders received from the Principal or owner, arranges transport, etc. for the purpose and prepares invoices on behalf of the Principal. For this service, the C&F agents receives commissions on the basis of agreed terms. Therefore, an essential characteristic of any services, to fall in the category of C&F agent, is that the relationship between the service provider and receiver should be in the nature of principal(owner) and agent. The C&F agent carries out all activities in respect of goods right from stage of their clearances from the premises of the principal to its storage and delivery to the customers.

11.      However, in the cases under consideration, the agencies are providing only storage facility for liquid cargo which has been imported or is intended for export. They charge rent for storage of liquid cargo deposited with them. They are not connected with the vessel bringing the goods and are not concerned with customs formalities. They issue invoices to customers towards storage charges and for no other charges. These agencies are not receiving any commission from the principal but only rental for storage facility, whereas a C&F agent's remuneration is in the form of commission. The transactions between the parties are not transactions between principal and an agent but between principal and principal. These agencies are neither receiving any despatch orders from the owners of the goods, nor are they arranging for the despatch of goods as per their directions by engaging transport, as is done normally by C&F agents. They are also not carrying out any service directly or indirectly in connection with clearing and forwarding operations. Therefore, services rendered by such agencies, in relation to storage of cargo, can not be considered to be in the nature of 'clearing and forwarding' agent and such agencies cannot be considered as "clearing and forwarding agents".

12.      However, under the Finance Bill, 2002 "storage and warehousing services for goods including liquids and gases" is proposed to be made to liable to service tax. Section 65 (87) of the proposed amended Finance Act, 1994, defines "storage and warehousing" to include storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by cold storage. Therefore, as and when these provisions of the Finance Bill come into effect the above types of cases shall be liable to service tax under the head "storage and warehousing".

13.      Suitable Trade notice may be issued for information of trade and field formations.

14.      The receipt of this order may kindly be acknowledged.

15.      Hindi version will follow.

A.K.Prasad
Director (CX.4)
Tel: 3012812
Fax: 3792965