ORISSA STATE BEVERAGES Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Orissa State Beverages Corporation Ltd. the Petitioner herein is a Government of Orissa undertaking and has sought to challenge the Order Dated 10.9.2008 (Annexure -1) passed by the Commissioner, Central Excise, Customs and Service Tax, Bhubaneswar.

(2.) THE brief facts of the case are that a show cause notice was issued to the Petitioner -Corporation alleging that the Petitioner had engaged in rendering taxable "storage and warehousing service" during the period from 1.10.2002 to 30.6.2003 and "business auxiliary service" w.e.f. 1.7.2003 by managing depots with sufficient space for storage of the goods of the suppliers providing support for loading/unloading/staking of the goods of the suppliers in the depots managing the inventory of the goods, providing security arrangements for the goods, selling the goods on behalf of the suppliers and ensuring payments as per the agreed rates from the sale proceeds to the suppliers.

(3.) THE Petitioner in response to the show cause notice contended that they were purchasing goods on payment of CST against C -Form and the title of the goods was transferred to them when the goods are received at the depots. The Petitioner alleged that they sell the goods to the retailers on payment of VAT/Sales Tax and in transaction of the property, no Service Tax is involved and, therefore, they are not liable to pay any Service Tax.