9911796707
TMI Blog2008 (10) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... n, Member (Technical) Shri V.V. Sivakumar, Adv. for Appellants. Shri N.J. Kumaresh, SDR for Respondent. [Order per :P. Karthikeyan Member (Technical)] - M/s. Valli Inc., (Valli), Trichy has filed this appeal challenging the order of the Commissioner (Appeals) which affirmed an order of the original authority Original authority had held that Valli had rendered services of a Clearing and Forwarding Agent to M/s ITC Limited (ITC) during 1.6.01 to 31.3.04. He had demanded service tax of Rs 52,862/- and imposed penalties under different sections of the Finance Act, 1994 (the Act). 2. After studying the agreement between M/s. ITC and Valli Inc., the Commissioner (Appeals) found that Valli had rendered C F Agent's serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax in that category. 3. The Commissioner (Appeals) found that the appellants as consignee had agreed to accept the goods on consignment sale basis upon the terms set forth in the agreement. Valli was under obligation to intimate sale, stock and remit the sale proceeds on daily basis. Valli dealt with branded goods of ITC only. ITC controlled and monitored the activities of Valli. Accordingly he found that Valli rendered service of C F Agent and incurred liabilities as found by the original authority. 4. Reiterating the grounds taken in the appeal, ld. Counsel for the appellants submitted that the lower authorities had been misled by the expression Consignment Sales Agent in the agreement and construed that the appellant wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r directly or indirectly connected with the clearing and forwarding operations in any manner to any person and includes a 'consignment agent . A consignment agent received goods from the principal, and dispatched them on the directions of the principal. As per Trade Notice No. 87/97/10/Service Tax/97 of Madurai Commissionerate dated 14th July 1997 a Clearing and Forwarding Agent normally undertook the following: a) Receiving the goods from the factories or premises of the principal or his agents; b) Warehousing these goods; c) Receiving dispatch orders from the principal; d) Arranging dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en ITC Ltd. and Valli Inc. As per the agreement, the appellant has to maintain a showroom, display the products of ITC and remit the proceeds promptly to ITC. The appellant is not an agent of ITC but an independent dealer dealing in ITC's branded goods. The appellant does not receive goods of ITC, store them and consign them to different destinations for ultimate sale. Merely receiving the goods in order to sell them from its own premises will not amount to clearing of the goods as a C F Agent. In Medpro Pharma Pvt. Ltd. (supra) relied upon by the Ld. SDR, the appellant therein received, stored and distributed the stocks of the products of M/s. Cipla Ltd. and forwarded them to parties at several destinations within the country as per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, it can be held that Valli renders Clearing and Forwarding Agent's service. When a dealer takes delivery of wares it deals in, it does not render any service to another person. As rightly pointed out by the Ld. Counsel for Valli, three agents are normally involved when C F Agent's service is rendered, i.e., the principal, the ultimate recipient of goods in business and the C F Agent that forwards the goods after taking delivery to dealers. Here the dealer receives the goods and sells them in retail to consumers. He has Sales Tax registration and issues bills for sales. No third agency is involved. The exclusivity clause other conditions of agency agreement and the commission paid to Valli gives the arrangement the complexion of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
