2008 (7) TMI 47 - AT - Service Tax

Demand of Service Tax was confirmed by treating the appellant as provider of clearing and forwarding service - appellants are no doubt commission agent as is seen from the agreement - held that the person engaged in procurement of orders on commission basis is not covered under service of clearing and forwarding agent - impugned orders are set aside and appeals are allowed

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellant against the demand of Service Tax for clearing and forwarding services. The decision of Prabhat Jarda Factory case was overruled by the Larger Bench in the case of Larsen & Toubro Ltd. The Tribunal held that commission agents procuring orders are not considered as clearing and forwarding agents. Therefore, the impugned orders were set aside, and the appeals were allowed.