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TMI Blog2007 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... Consignment Agents for various paper products of M/s. J.K. Paper Ltd., Rayagada. In terms of the Agreement, the respondents were to receive the goods sent by the principal on a stock transfer invoice and the goods so received were stored in godown and sold to the customers based on the price guidelines given by the principal and as per market conditions. For the sale of the goods, the respondents raise invoices indicating the value and the appropriate sales tax. The sale consideration had to be remitted to the principal within 30 days of the date of receipt of materials. For the above said activity, the respondents were receiving a commission of Rs. 1500/- per MT. Revenue proceeded against the respondents on the ground that they were rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ristic of any services, to fall under the category of C F Agent, is that the relationship between the service provider and the receiver should be in the nature of principle (owner) and the agent. The Consignment Agreement dated 17-1-1998, effective from 1-1-1998, entered into by the respondent with M/s. J.K. Corp. Ltd. contain all the essential characteristics. (iv) The services rendered by the assessee fall rightly under 'C F Agents' category and not under 'Consignment Agent' under the category of 'Business Auxiliary Service'. 4. The learned Chartered Accountant for the respondent urged the following points: (i) That the respondent is specifically covered under 'Business Auxiliary Services', w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Limited v. CCE - 2006 (202) E.L.T.389 (S.C.) (v) In case of bona fide doubts, longer period cannot be invoked and penalty cannot be levied. 5. We have gone through the re of the case carefully. Revenue has relied on the decision in the case of Prabhat Zarda Factory. However, the Larger Bench, in the case of Larsen Toubro Ltd. v. CCE, Chennai - 2006 (3) S.T.R. 321 (Tri.-L.B.), has overruled the decision in the case of Prabhat Zarda Factory. Therefore, Revenue's reliance on the above mentioned decision is not of much consequence for their case. In our view, the Mahavir Generics Order has clearly brought out the distinction between 'Clearing Forwarding Agents' and 'Consignment Agents.' A Clearing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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