M/S GUJARAT STATE FERTILIZERS & CHEMICALS LTD. vs COMMISSIONER OF CENTRAL EXCISE

The Supreme Court upheld the decision of the CESTAT affirming the imposition of service tax on GSFC for incineration charges under Section 65(105)(zza) of the Finance Act, 1994. The Court found that the process undertaken by GSFC constituted 'Storage and Warehousing Services' despite the appellants' claims that no service was provided to GACL. The Court held that the sharing of costs for incineration did indeed amount to a taxable service, thus confirming the penalties imposed under Section 78 of the Finance Act, 1994.