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TMI Blog2015 (5) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... lants, the Commissioner (Appeals) confirmed the order of the Adjudication authority and rejected their appeal. 2. Learned counsel for the appellants submit that the appellants availed Cenvat credit on the invoices raised by the C&F agents, namely, M/s. Thulsids Khimji, M/s. BIC Logistics & M/s. Excel India, They have availed Cenvat credit of service tax paid on the invoices raised by the C&F agents. The C&F agents are duly registered with the Sales Tax authorities and paying service tax to the respective jurisdictional Commissionerate. The Period involved in this case relates prior to the amendment of definition of "input service" on 01.04.2008. They are eligible to avail credit whether it is under C&F agent service or GTA Outward Transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoices raised by the C&F agents for transportation and other service charges. On perusal of the invoice no. CHN/AD/26/001997, dated 15.07.2006 raised by M/s. Excel India Pvt. Ltd., the consignments have been delivered from M/s. Lucas TVS Ltd., Padi, Chennai to Birmingham, U.K. The invoice no. 1108198, dated 22.06.2006 raised by M/s. Tulsidas Khimji for freight from M/s. Tata Motors Ltd., Pimpri. The invoice no. 1108194 dated 22.06.2006 raised by M/s. Tulsidas Khimji for Education Cess from M/s. Tata Motors Ltd., Pimpri. It is evident from the invoices that the C&F agents are registered with the Service Tax authorities and have paid service tax on the services rendered by them as C&F agents to the appellants. The services include freight, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax paid in respect of post clearance activity is not in relation to the manufacture of final product and, therefore, not an input service. The assessee was, therefore, not eligible to avail of CENVAT credit on the service tax paid towards Commission paid to C & F agents. (i) The Tribunal was of the view that C & F agents have a definite role to play in promotion of sales by storing goods and supplying the same to customers. Thus, he is actually promoting sales. (ii) The learned counsel for the appellant submitted that the service rendered by the C & F agents is also related to sales. It is used after the manufacturing activity is over and after clearance of the final products, that is, after the place of removal, therefore, it does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding 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. (iv) Ordinarily, a C & F agent receives goods from the factory or premises of the manufacturer (the Principal) or his agents and stores these goods, dispatches these goods as per orders received from the Principal, arranges transport, etc. for the purpose and prepares invoices on behalf of the Principal. In respect of such service, the C & F agent receives commission on the basis of agreed terms. Therefore, an essential characteristic of any service, to fall in the category of C & F agent, is that the relationship between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ambit of Rule 2(l) of the Rules as it stood prior to its amendment with effect from 1-4-2008, namely clearance of final products from the place of removal. However, this court is not in agreement with the view adopted by the Tribunal that such services would amount to sales promotion and is, therefore, an input service. For the reasons stated while discussing the issue as regards service commission paid to foreign agent, the services rendered by the C & F agents cannot be said to be in the nature of sales promotion. This issue stands answered accordingly, in favour of the assessee and against the revenue." 7. The ratio of the above judgment is squarely applicable to the facts of the present case and as such, the case laws relied on b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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