9911796707
TMI Blog2016 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... March 2004, on investigation by the authorities, it was concluded that appellant acted as a clearing and forwarding agent and accordingly liable to service tax on the amounts received by them as service charges from IPCL. Show cause notice was issued for demand of the service tax liability interest thereof and proposing to impose penalties. Appellant contested the show cause notice on merits as also in limitation. After following the due process of law the adjudicating authority confirmed the demands and demanded interest, also imposed penalties. Aggrieved by such an order, appellant preferred an appeal before the first appellate authority. After extending an opportunity of personal hearing, the first appellate authority did not agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the goods received by them is an indicator that appellant is functioning as a consignment agent. He would draw our attention to the judgement of Honourable High Court of Karnataka in the case of Mahaveer Generics - 2010 (17) STR 225. He would draw our attention to the definition of clearing and forwarding agent and submit that consignment agent is under the definition. 5. We have considered the submissions made by both sides and perused the records. 6. The issue be considered in this case is whether appellant is covered under the definition of clearing and forwarding agent and liable to discharge service tax or otherwise. 7. The entire issue is raised by the revenue is based upon the distributor agreement entered by IPCL and the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement specifically talks about issuance of sales tax for the bills of sales of the goods sold by the appellant. It is also seen that such clause talks about the liability of the distributor to pay sales tax under the relevant sales tax acts shall survive even on termination or expiry of the agreement which itself indicate that the appellant is appointed as a distributor and not as C&F agent. 22. Ld.SDR's submission that accounts and registers of the appellant distributor are subject to verification of the representative/officers of IPCL will not take the case of the Revenue any further as IPCL may decide the marketing and sales pattern of the goods which is informed to the distributor, is only for overall equitable distribution of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerics, it is seen that the said judgment was rendered in a dispute as to whether the respondent therein was consignment agent or commission agent. Their Lordship went through the entire agreement and has come to the conclusion wherein it was indicated that the respondent has been appointed as an agent. Their Lordship also have clearly recorded that the respondents in that case was C&F agent which indicated that the respondents will sell the product as consignment agent of principal, at a price which are fixed by principal. 25. The factual matrix of this case clearly indicates that the appellant never acted as C&F agent or a consignment agent as rightly held by Ld.Member (Judicial). It is correctly argued by the ld.Counsel and held by l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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