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TMI Blog2005 (1) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of Rs. 250 per MT. In these cases, they do not even handle the goods. The customers directly book orders and the Principal sends the goods to the customers. In case the customers default in payment, the appellant undertakes the liability and compensates M/s. IPCL. In our view, this service cannot come within the purview of C F operations. Even though the appellant is a C F Agent, every activity undertaken by him cannot be brought within the purview of C F operations. Thus, we do not find any merit in the OIA. We allow the appeal with consequential relief. - [Order per: T.K. Jayaraman, Member (T)]. - Revenue proceeded against the appellant on the ground that they had failed to declare the whole value of service rendered to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort levy, imposed equal penalty under Section 78 of the Finance Act, 1994. Penalties were imposed under Sections 75A and 76 of the Act. Interest was also demanded under Section 75. The appellants were not successful before the Commissioner (Appeals). They have come before this Tribunal strongly challenging the OIA. 2. Shri K.S. Ravi Shankar, learned Advocate appeared for the appellant and Shri R.V. Ramakrishnappa, learned JDR appeared for Revenue. 3. The thrust of the learned Advocate's submission is that the Revenue is not justified in levying Service Tax on an activity, which is not related to C F agency work as per the Finance Act, 1994. It was clarified that the appellants indemnify their Principal in the event of loss to them as a resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f financing the sales of their principals and of guaranteeing their accounts. (Source: Kohler's Dictionary for Accountants) Del credere agent: An agent who agrees to protect his or her principal against loss resulting from the extension of credit to third parties by the agent on behalf of his or her principal. In the absence of any agreement, an agent has no responsibility to a principal for default on the part of third parties. (Source: Kohler's Dictionary for Accountants)". Further, he urged that the Commissioner (Appeals) has not at all taken into consideration all the points urged by the appellant and has held that Del Credere Agency is also C F Agency work. 5. The learned JDR reiterated the points in the OIA. 6. We have gone through th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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