2007 (7) TMI 97 - AT - Service Tax

Mere procuring of order on commission basis do not fall under the definition of Clearing and Forwarding Agent under section Finance Act, 1994. The appellant were engaged on in such an activity after granting pre-deposit, demand set aside

Summary

The Appellate Tribunal CESTAT, Chennai set aside a Service Tax demand of over Rs. 5 lakhs on the appellants for the period 1999-2000 to 2003-04. The demand was based on treating them as Clearing and Forwarding Agents of a foreign company, but the Tribunal ruled that persons engaged in mere procurement of orders on commission basis do not fall under this definition. The demand was found to be not sustainable in law, and the appeal was allowed after waiving pre-deposit.