Consignment agent services were not taxable as clearing and forwarding agent services; service tax demand was set aside.

Consignment agent services for the disputed period before 10.09.2004 were not liable to service tax because such services had not been brought within the tax regime, and a consignment agent could not be equated with a clearing and forwarding agent merely to sustain the demand. The Tribunal followed settled precedent applying the same principle on identical or similar facts and held that the service tax demand was unsustainable. The impugned orders were set aside, and both appeals were allowed in favour of the assessee.

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Issues: Whether consignment agent services for the disputed period could be treated as clearing and forwarding agent services so as to attract service tax.

Analysis: The dispute related to the period before 10.09.2004, when consignment agent services were not brought within the service tax regime. The Tribunal followed the settled view that a consignment agent cannot be equated with a clearing and forwarding agent merely for the purpose of demanding service tax. It relied on prior decisions applying the same principle to identical or similar facts.

Conclusion: The demand of service tax was not sustainable and the impugned orders were set aside, resulting in allowance of both appeals in favour of the assessee.

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