Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1994: ss.65(105)(zza) 65(102) - Two PSUs -- GSFC and GA CL-Both the companies receiving Hydro Cynic Acid (HCN) ji-om RIL through common pipeline and utilising the same in their respective factories and sharing the incineration charges Finance Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Finance Act, 1994: ss.65(105)(zza), 65(102) - Two PSUs -- GSFC and GA CL-Both the companies receiving Hydro Cynic Acid (HCN) ji-om RIL through common pipeline and utilising the same in their respective factories and sharing the incineration charges - Allegation that GSFC was collecting 'incineration charges' from GACL and the said amount charged by GSFCjimn GACL amounted to providing 'storage and warehousing services' falling under s.65(105){zza)-Held: To enable GACL to receive this HCN through common pipeline, arrangement/agreement was entered into between these two companies - For this purpose, handling facilities were installed in the premises of GSFC - Howeve1; for installation of these facilities both "he parties had contributed towards the investment- Since the said handling facilities were in the premises of GSFC, incineration is also taking place at the said premises - Handling facilities expenditure thereof is shared equally by both the parties - Once these facts are accepted, handling portion and maintenance including incineration facilities is in the nature ofjoint venture between two of them and the parties have simply agreed to share the expenditure - The payment which is made by GACL to .GSFC is the share of GACL which is payable to GSFC - Thus, it cannot be treated as common 'service 'provided by GSFC to GACL for which it is charging GACL- Since there is no element of service provided by GSFC, the question of service tax would not arise - Demand of 'service tax' made by the respondent is unwarranted |
Judge | Hon'ble Mr. Justice Abhay Manohar Sapre Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2016 INSC 1209 |
Petitioner | M/s Gujarat State Fertilizers & Chemicals Ltd.&anr. |
Respondent | Commissioner Of Central Excise |
SCR | [2016] 11 S.C.R. 755 |
Judgement Date | 2016-11-22 |
Case Number | 4066-4067 |
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