9911796707
TMI Blog2010 (5) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... d Service Tax Appellate Tribunal (CESTAT) at Bangalore by raising the following substantial questions of law : (i) Whether the CESTAT is legal and correct in setting aside the impugned OIO No. 18/2006, dated 28-2-2006 on the ground that the activities of the respondent did not fall under the taxable category of Clearing and Forwarding Agent Services? (ii) Whether activities undertaken by the respondent would fall within the ambit of C F Agent Services, within the definition of section 65(25) of the Finance Act, 1994? 2. The facts of the case giving rise to filing of this appeal are that the respondent herein is said to be engaged in Clearing and Forwarding Agency services (for short, C F Agent ), according to the appellant herein. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant that the respondent herein was providing services in the nature of a C and F Agent and that though the respondent is providing clearing and forwarding services indirectly, the respondent has to be considered within the scope of the definition in section 65(25) of the Act, and therefore, CESTAT was not right in holding that the respondent is not a C and F Agent and in this regard he relied upon the decision of this Court in the case of CCE v. Mahaveer Generics [2010] 24 STT 545, in support of his submission to contend that the order passed by the CESTAT is not in accordance with law and that the same requires to be set aside and the substantial questions of law shall be answered in favour of revenue. 5. Per co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ief and which order does not call for any interference by this Court. 6. Having heard the learned counsel on both sides and on perusal of the material on record, at the out set, it would be necessary to extract section 65(25) of the Finance Act, 1994 which reads as under : Clearing and Forwarding Agent means any person who is engaged in providing any service, either directly or indirectly, connected with the Clearing and Forwarding operations in any manner to any other person and includes a consignment agent. 7. In this context, it is necessary to quote from Trade Notice No. 87/97, dated 14-7-1997 of Madurai-2 Commissionerate, wherein the nuances of a Clearing and Forwarding Agent are given. 2. Clearing and Forwarding Agents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are as follows : (Both parties have agreed that service fee is to be paid to AIL by LGS for the following: 1. AIL to provide operating services to LGS - Servicing customer of LGS located at India - Any other operating activities required for the sales to India 2. AIL to cover all marketing and promotional activities in India 3. AIL to cover all warranty cost incurred in fulfilling Acer s liabilities to end customer. Commission will be computed monthly and shall be agreed by both parties through e-mail correspondence.) 8. In the instant case, on a reading of the aforesaid definition and terms of the Agreement, we find that the assessee is not engaged in collecting and receiving goods of the foreign principal but it is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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