2018 (4) TMI 766 - AT - Service Tax

C & F Agent service - whether the activity of consignment agent should be covered under the purview of the taxable service of C & F agent service? - Held that - the issue is covered by the decision in the case of Santani Sales Organisation Versus Central Excise, Customs And Service Tax Appellate Tribunal, Delhi 2017 (9) TMI 1265 - DELHI HIGH COURT , where it was held that consignment agent cannot be termed as C & F agent for the purpose of payment of service tax - appeal allowed - decided in favor of appellant.

Summary

Issues: Interpretation of services provided by the appellant as consignment agents, classification under C & F Agent service for service tax purposes.

Analysis:
The appeals were filed against the order passed by the Commissioner, Central Excise (Appeals), Jaipur, confirming service tax demands against the appellant for services provided to various Tea companies as consignment agents. The appellant argued that they should not be classified under "Clearing and Forwarding Agent Service" for service tax purposes as they sold goods to customers, issued invoices with VAT, and deposited the VAT with the State Government. The appellant relied on previous Tribunal decisions, including Final Orders in the cases of Santani Sales Organisation and the same appellant, where it was held that consignment agents cannot be considered as C & F agents for service tax payment. The Revenue, represented by the DR, supported the findings in the impugned order.

The Tribunal examined whether the activity of consignment agents should be categorized under the taxable service of C & F agent service. Referring to the Tribunal's decision in the case of Santani Sales Organisation, it was established that consignment agents cannot be termed as C & F agents for service tax payment. The Tribunal cited similar rulings from other cases to support this conclusion. As a result, the impugned order was found to lack merit, and the appeal was allowed in favor of the appellant, setting aside the previous decision.

In conclusion, the Tribunal's judgment clarified that consignment agents should not be classified under C & F Agent service for service tax purposes based on established precedents and rulings. The decision highlighted the distinction between consignment agents and C & F agents, emphasizing that consignment agents, like the appellant in this case, do not fall under the taxable category of C & F Agent service.