2008 (7) TMI 154

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..... fixing the liability as consignment agent
S.S. Kang, Vice President, and Rakesh Kumar, Member (Technical) Shri A.K. Madan, Departmental Representative, for the Revenue; Shri V.K. Agrawal, Advocate for the respondents; [Order per S.S. Kang, Vice President] - Appellants filed this appeal against the impugned order whereby demand of service tax along with interest was confirmed and penalties were imposed. 2. The appellants are engaged in handling and storage of iron and steel materials of M/s. Rashtriya Ispat Nigam Ltd. as a consignment agent in respect of stock yard at Agra and Kanpur. The appellants are registered under service tax rules and paying service tax in respect of commission received from Rashtriya Ispat Nigam Ltd. Show cau .....

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..... herefore, the same are not includible in the gross amount for the purpose of service tax. 4. Contention of Revenue is that the appellants were appointed as consignment agent and as per terms and conditions of the agreement the appellants are to receive and clear the consignment, loading, un-loading into trucks, trailers, carrying transportation to stock yar, warehouse, etc. and thereafter the appellants were to dispatch the consignment to customers under invoices. Contention of the Revenue is that the appellants are charging the steel plants under composite bill. The appellants are providing service as consignment agent, therefore, the appellants cannot say that the charges of transportation, loading and unloading are not part of service p .....

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..... ntract and separate bills were raised in respect of transportation charges, hence these charges are not to be taken into consideration for fixing the liability as C & F agent. In the present case facts are different. In the present case there is one contract and the appellants are also charging the total consideration amount under a single bill, therefore, in these circumstances we find no merit in the contention of the appellants that the charges in respect of transportation, loading and unloading are not to be taken into consideration for fixing the liability as consignment agent. 7. In respect of cutting, bending and straightening of the material during warehousing period we find that these functions are not related to the service provi .....

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