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TMI Blog2014 (9) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... and forwarding agents to receive the products manufactured/purchased or otherwise acquired by the latter at their premises and to store and dispatch the same in such lots and in such manner and to such parties as may be directed by Cipla from time to time. For the services rendered the appellant was to receive service charges @ 2.5% on the net invoice price. The department was of the view that the said service came under the purview of "clearing and forwarding agent" service and the appellant is liable to pay Service Tax on the consideration received. Accordingly notice was issued proposing to demand Service Tax of Rs. 2,17,074/-, 3,20,488/- and 3,66,198/- for the periods June 2001 to September, 2001, October 2001 to March, 2002 and April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarification issued by the C.B.E. & C. vide circular 2/1/2002-S.T., dated 24-4-2002 wherein it was clarified that the relationship between the service provider and receiver should be in the nature of principal (owner) and agent and the C&F agent carries out all activities in respect of goods right from the stage or their clearances from the premises of the principal to its storage and delivery to the customers. As they do not undertake any clearance from the premises of the principal, they are not clearing and forwarding agents as contemplated in the law. (iv) The Hon'ble Punjab & Haryana High Court in the case of CCE v. Kulcip Medicines [2009 (14) S.T.R. 608 (P&H)J held that the word "and" used after the word "clearing" and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h of the Tribunal in the case of Medpro Pharma Pvt. Ltd. [2006 (3) S.T.R. 355] had held that even if the service provider provides 'forwarding service' alone, he is liable to tax under the category of clearing and forwarding agency service. (c) The Hon'ble High Court of Karnataka in the case of Mahaveer Generics [2010 (17) S.T.R. 225 (Kar.)] had held that services of a 'consignment agent' is liable to Service Tax under the category of C&F agency service. Accordingly he prays for upholding the impugned order. 5. We have considered the submissions made by both the sides. 5.1 We have perused the agreement entered into by the appellant with Cipla Ltd. From the terms and conditions specified therein, the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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