In Brief
Two government-owned chemical companies, GSFC and GACL, received hydrocyanic acid through a shared pipeline and split the costs of handling and incineration facilities in equal ratio. Tax authorities claimed that GSFC's charges to GACL for incineration constituted taxable 'Storage and Warehousing Services'. The Supreme Court held that the arrangement was a joint venture where both parties simply shared common expenses in agreed proportions, not a service provided by one to the other. Since the essential element of 'service provision with charges' was absent, service tax did not apply. The appeal was allowed and the tax demand was set aside.">
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