9911796707
TMI Blog2017 (4) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... tive sense. The goods were consigned by the principals to the appellant’s premises and the appellant did not undertake any clearing activity. Since the appellant is not undertaking the activities of both clearing and forwarding, service tax would not be leviable on the activity of mere forwarding and other incidental and ancillary activities, with reference to goods. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant submitted that pursuant to the agreement entered with various client companies, the goods were consigned by them (clients) to the godown of the appellant and the appellant merely forwarded the goods to the persons as instructed by the principals. He further submitted that in the whole exercise of handling the goods, there was no clearing of goods by the appellant from the factory of the clients and thus, such activity will not fall within the ambit or scope of Clearing & Forwarding service for levy of service tax. To support such stand, the ld. Advocate has relied on the decision of the Tribunal in the case of Kulcip Medicines (P) Ltd. Vs. Commissioner of Central Excise, Delhi-III, 2006 (1) STR 36 (Tri.-Del.) and also the judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. This fact is evident from the word 'and' used after the word 'clearing', but before the word 'forwarding' in clause (j) of Section 65 (105) ibid. Thus, the word 'and' placed in between the words 'clearing' and 'forwarding' should be considered in a conjunctive sense. In other words, if the clearing operation are separated from forwarding operation, the levy of service tax could not by attracted, as it only involves one of the two activities and not both the operations together. In order to ascertain whether the appellant had provided both the activities of clearing and forwarding service to its clients, the terms and conditions itemized in the contracts require proper analysis. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispatch the Products to the Company's stock point/s maintained by the C&FA on stock transfer basis. iv). Dumex India Private Ltd.- The CFA acknowledges the [timely receipt of the Products form the Company and] delivery of the received Products to customers at locations specified by the Company is of essence of this Agreement and further that any failure by the CFA to comply with its obligations in this manner could cause substantial losses to the Company monetary terms and to the reputation of the Company. The CFA also acknowledges that compliance by it of all applicable laws keeping in mind the letter and spirit of such applicable laws is of utmost importance to the Company. The CFA shall therefore, comply with its obligations set o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o clearing forwarding operation'. Thus, the definition makes it clear that all services rendered by the clearing and forwarding agent are not within the scope of the levy; the levy is limited to 'clearing and forwarding operations'. The Circular of the Board on this issue may be read: 'The matter has been examined. Normally, a C&F agent receives goods from the factories or premises of the Principal or his agents, stores these goods, dispatches these goods as per orders received from the Principal or owner, arranges transport, etc. for the purpose and prepares invoices on behalf of the principal. For this service, the C&F agents receive commissions on the basis of agreed terms. Therefore, an essential characteristic of any services, to fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
