Total Energies Marketing India Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
Introduction: In a significant legal development, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Chennai has ruled on the case involving Total Energies Marketing India Pvt. Ltd. and the Commissioner of GST & Central Excise. The case revolves around the question of whether storing Liquefied Petroleum Gas (LPG) in a ‘bullet’ storage facility amounts to providing ‘Storage and Warehousing Services’ under Section 65(102) of the Finance Act, 1994.
Background of the Case: The appellant, Total Energies, is a service provider registered with the Service Tax Department. They are engaged in offering ‘Storage & Warehousing Services’ along with integrated LPG services, including import, storage, sales, and supply. The case came into light when Total Energies was found to be collecting ‘lease rentals’ for providing specialized LPG storage units, known as ‘bullets’, at their customers’ premises. This led to a Show Cause Notice and subsequent legal battle.
The Arguments Presented
By Total Energies
- Contended that they had no control over the gas stored in the bullet storage tanks.
- Argued that their activities amount to ‘deemed sales’ under Article 366 (29A) of the Indian Constitution.
- Mentioned prior Tribunal orders favoring their stance.
By The Commissioner
