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2011 (2) TMI 500

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..... structions of their principals - It is not the situation as the respondents are procuring orders i.e., selling the goods of their principals which is not the duty of Clearing & Forwarding Agent - Moreover, the respondents are guaranteeing payment of goods sold by them on behalf of their principals which is also not the duty of Clearing & Forwarding Agent - Hence, the activity undertaken by the res .....

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..... o the prospective buyers. The respondents also owns the responsibility and guarantee of payment.' A show-cause notice was issued to the respondents proposing liability to pay service tax under the category of "Clearing Forwarding Agent". The impugned period is 1-9-1999 to 30-9-2002. Admittedly, during that period "Business Auxiliary Services" were not in the service tax net. The Adjudicating Aut .....

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..... also owns responsibility and guarantee of payment of the goods supplied by Reliance Industries Ltd. Hence, the impugned order be upheld. 4. Heard both sides. On careful examination of the submissions made by both sides we find that service tax on Clearing Forwarding Agency is leviable under section 65(25) of Finance Act, 1994 which is reproduced below : "'Clearing and Forwarding Agent' mean .....

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