Agreement construed as a whole: handling, clearing and forwarding services made the taxpayer liable for clearing and forwarding registration.

An agreement must be read as a whole, including its recitals, to determine the true nature of the services provided. Here, the contractual wording showed that the appellant was engaged to handle, clear, store, distribute and forward goods for Cipla, so the activity fell within clearing and forwarding agent services. Later registration under another service head and the absence of a show-cause notice for the relevant period did not alter the substantive character of the services. The appellant was therefore required to remain registered as a clearing and forwarding agent for service tax purposes.

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Issues: Whether the appellant's activities under the agreement with Cipla amounted to clearing and forwarding services so as to require continued registration as a clearing and forwarding agent.

Analysis: The agreement had to be read as a whole, with particular weight given to its recitals, which stated that the appellant would provide handling, clearing and forwarding services and that Cipla desired to avail of those services. Clause 1, read in that context, showed that the appellant was appointed to receive, store, distribute and forward the goods in a manner directed by Cipla. The wording could not be isolated to exclude clearing operations when the contractual intent clearly included such services. The fact that the appellant later registered under another service head or that no show-cause notice had been issued for the relevant period did not affect the substantive character of the services.

Conclusion: The appellant's activities fell within clearing and forwarding agent's service, and the direction to maintain registration as such was upheld.

Ratio Decidendi: Where the agreement, read as a whole and with its recitals, shows that the parties intended the assessee to provide handling, clearing and forwarding services, the assessee is liable to be treated as a clearing and forwarding agent for service tax purposes.

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