9911796707
TMI Blog2010 (5) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the activities undertaken by the respondent would fall within the ambit of C and F agent services, within the definition of section 65(25) of the Finance Act, 1994?" 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 and F agent"), according to the appellant herein. The respondent was served with a show-cause notice for the period from 2001-02 to 2002-03 by contending that the service tax for the said period had not been remitted by the respondent. In terms of the said s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent has to be considered within the scope of the definition in section 65(25) of the Act, and therefore, the 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 Commissioner of Central Excise, Bangalore v. Mahaveer Generics [2010] 31 VST 439, 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 the Revenue. Per contra, the learned counsel appearing for the respondent-assessee has stated that the nature of the activity of the respondent is not that of a "C and F agent". He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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' 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." In this context, it is necessary to quote from Trade Notice No. 87/97 dated July 14, 1997 of Madurai-2 Commissionerate, wherein the nuances of a clearing and forwarding agent are given. "(2). Clearing and forwarding agents 2.1 Clearing and forwarding agent has been defined as any person who is engaged in providing any service, either directly or indirectly, connected with cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 customers. Commission will be computed monthly and shall be agreed by both parties through e-mail correspondence). 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 engaged in procuring customers for the foreign principal and fulfilling their obligations. Therefore, in our view the nature of activities of the respondent-assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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