2007 (10) TMI 366 - AT - Service Tax

Clearing and forwarding agent- The Appellant, a manufacturer of sugar, has been charged with service tax liability as a recipient of clearing and forwarding services. The contention of the appellant that the service rendered by the broker was only for procuring orders for the appeallant s company thus broker has not rendered any service in the nature of clearing and forwarding agent services. Held that in the light of some decision decided earlier that booking of order done by broker on behalf of appellant cannot be covered under C&F Agent services, thus the impugned order set-aside and the appeal is allowed.

Summary

The Appellate Tribunal CESTAT, Kolkata ruled in favor of the appellants in a service tax liability case related to C&F services. The tribunal found that the service rendered by the broker for procuring orders did not qualify as C&F agent's services. Citing relevant decisions, the tribunal set aside the impugned order and allowed the appeal.