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Issues:
The issues involved in the judgment are whether the respondents are liable to pay service tax for providing clearing and forwarding agent services and whether the demand for service tax is sustainable based on the activities undertaken by the respondents. Issue 1: Liability to Pay Service Tax for Clearing and Forwarding Agent Services The Revenue filed an appeal against an order holding that the respondents are not recipients of clearing and forwarding services but merely provided their tanks for storage of final products, which falls under 'storage and warehousing service'. The Revenue contended that the respondents' activities, as per agreements with various parties, such as evacuating tankers and blending, constitute clearing and forwarding agent services, making them liable to pay service tax. Issue 1 Details: The Trade Notice No. 59/99 issued by the Mumbai Commissionerate outlines activities of a clearing and forwarding agent, including receiving goods, warehousing, arranging dispatch, and maintaining records. The respondents argued that they only stored products and did not undertake the specific activities mentioned in the Trade Notice. The definition of 'clearing and forwarding agent' under the Finance Act includes any person providing services connected with clearing and forwarding operations. However, the activities listed in the Trade Notice were not proven to be carried out by the respondents, and no evidence was presented by the Revenue to support their claim. Consequently, the impugned order was upheld, and the appeal was dismissed.
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