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TMI Blog2015 (9) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... arketing of the goods for their principal manufacturer, eventhough they may handle the goods for storage and distribution and forwarding of goods. The Tribunal in an identical issue in the case of CCE Vs Transasia Sales Syndicate (2007 (7) TMI 82 - CESTAT, BANGALORE ) held that service rendered by the assessee do not fall under Clearing & Forwarding service but as "Commission Agents". - appellant's principle activity is not related to clearing & forwarding of goods, as it is clearly evident from the agreement that the appellant was appointed as Commission Agent for marketing and sale of goods. Therefore, the demand under C&F service is not sustainable as held in the above Tribunal's decision in CCE Vs Transasia Sales Syndicate (supra) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 003. He particularly refers to para 2.1.2 of the circular. He has also enclosed relevant agreements in the appeal memorandum for each appeal. He refers to relevant clauses of the agreement related to sale and marketing by the appellant. The principal function of the appellants is marketing and sale for the principal manufacturer. He further submits that Explanation to definition of Commission Agents includes any person who acts on behalf of another person and causes sale or purchase of goods and includes handling of delivery of goods and other activities. He submits that so long as the main activity is only for sale and marketing of goods it is rightly classifiable under commission agent Service covered under BAS. He further submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of goods on behalf of another person for a consideration which is based on the quantum of such sale or purchase. In the present case, appellant's principal activity is sale and marketing of goods on behalf of the principal manufacturer and also for carrying out storage and distribution. The lower authorities have held that the levy would fall under C F Agent service because the appellants are handling the goods in addition to sale and marketing. In view of definition and Explanation to Section 65 (19), it is clear that appellant's principle activity is sale and marketing of the goods for their principal manufacturer, eventhough they may handle the goods for storage and distribution and forwarding of goods. The Tribunal in an ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e covered under C F Agents. In the Chandan Chemicals case, the contention of the Revenue that a Commission Agent does not physically deal with goods and upon dealing with goods, he becomes a clearing and forwarding agent has not been accepted in the light of the statutory definition of Business Auxiliary Services. In the light of the above decisions, we hold that the decision of the Commissioner (Appeals) is correct. Revenues appeal has no merits and the same is rejected. Against the above Tribunal order, Revenue filed appeal and the Hon'ble Supreme Court dismissed the Commissioner (Appeals) order. 6. In the present case, the appellant's principle activity is not related to clearing forwarding of goods, as it is clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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