Service Tax Not Applicable to Del Credere Agents as Clearing & Forwarding Agents

The Appellate Tribunal CESTAT, Bangalore held that Service Tax is not leviable on Del Credere Agents classified as 'Clearing and Forwarding Agents' by the Revenue. The Tribunal emphasized that previous judgments had settled this issue in favor of the assessees, citing various cases and a Larger Bench decision. Consequently, the Tribunal rejected the Revenue's appeals, affirming that Service Tax does not apply to Del Credere Agents categorized as such by the Revenue.

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Issues:
- Whether Service Tax is leviable on Del Credere Agent categorized as 'Clearing and Forwarding Agents' by the Revenue.

Analysis:
The Appellate Tribunal CESTAT, Bangalore dealt with Revenue appeals arising from Orders-in-Appeals concerning the levy of Service Tax on Del Credere Agents categorized as 'Clearing and Forwarding Agents' by the Revenue. The Commissioner of Central Excise (Appeals) had ruled in favor of the assessees, stating that Service Tax is not applicable to Del Credere Agents. The Revenue challenged these orders, leading to the present appeals.

The learned Advocate representing the assessees referred to various judgments, including the case of Raja Rajeswari International Polymers (P) Ltd. v. CCE, Bangalore-III, and other judgments such as Gemini Associates v. CCE and Sreenidhi Polymers Pvt. Ltd. v. CCE. Additionally, the Advocate cited judgments from Allahabad High Court and Madras High Court to support the contention that the issue had been conclusively settled in favor of the assessees. The Advocate highlighted that the Larger Bench judgment in L & T Ltd. v. CCE had also favored the assessees. The Revenue, represented by the learned JDR, reiterated the Departmental view opposing the assessees' position.

Upon careful consideration, the Tribunal noted that previous judgments had extensively analyzed the nature of Del Credere Agents and concluded that they do not fall under the category of 'Clearing and Forwarding Agents.' The Tribunal emphasized that the issue had been settled in favor of the assessees by various Benches, including the Larger Bench, making it a non-res integra matter. Consequently, the Tribunal found no merit in the Revenue's appeals and rejected them.

In conclusion, the Tribunal upheld the Orders-in-Appeals that Service Tax is not leviable on Del Credere Agents categorized as 'Clearing and Forwarding Agents' by the Revenue. The judgment reiterated that the issue had been conclusively decided in favor of the assessees through various judicial pronouncements, making the Revenue's appeals untenable.

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