2009 (10) TMI 6 - AT - Service Tax

Clearing and Forwarding Service - activity of the assessees consists of receipt of goods from their principals storage of the same in their premises despatch of the same to clients on their sale invoices maintenance of records for receipts sales preparation of periodical statements about stock position collection of amount from the clients on behalf of their principals and remittance of the amount collected from the clients and undertaking of payment of taxes and rental charges of godown etc. on behalf of the principals held that the activity can not be held to be a clearing and forwarding services so as to be liable to service tax under this category demand and penalty set aside.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants in a service tax case related to clearing and forwarding services. The tribunal found that the appellants were not liable for service tax as they did not undertake the clearance of goods from their principals. The decision was based on a previous ruling by the Punjab & Haryana High Court. The impugned order was set aside, and the appeal was allowed.